Uber is laying off 3,700 as rides plummet due to COVID-19

In an SEC filing dating back to last week, Uber disclosed plans to layoff 3,700 employees. The figure amounts to around 14% percent of the ride hailing giant's total workforce.

In the document, the company states that the job loss is part of a planned reduction in operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the company's business."

While Uber hasn't suspended operations altogether, the company has no doubt taken a massive hit to its bottom line as state governments have issued stay at home orders for non-essential workers.

In a letter to staff, CEO Dara Khosrowshahi noted that the cuts will come from from community operations and recruiting. Uber will also be closing around 40 percent of its Greenlight locations - used for in-person driver assistance.

With the reality of our rides trips volumes being down significantly, our need for CommOps as well as in-person support is down substantially," he writes. And with our hiring freeze, there simply isn't enough work for recruiters."

Khosrowshahi has also agreed to waive his own base salary for the rest of 2020.

In connection with the foregoing, Dara Khosrowshahi, the Company's Chief Executive Officer, after consultation with the Board of Directors, agreed to waive his base salary for the remainder of the year ending December 31, 2020," the company writes in the filing. In connection with this decision, Mr. Khosrowshahi and the Company entered into a letter agreement, effective as of May 2, 2020."

The executive made around $1 million in 2019.

We've reached out to Uber for further comment.