Uber lays off 3,700 employees, CEO forgoes his salary

Uber Technologies, Inc. plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on its business, the company said in a SEC filing.

The San Francisco based ride-hailing giant would be laying off nearly 3,700 full-time employees due to lower trip volumes in its rides segment and the company's current hiring freeze. This announcement will affect the company's customer support and recruiting teams.

In connection with these actions, the company estimates that it will incur approximately $20 million related to severance and other termination benefits. The company is evaluating other cost and will provide an update at a later date.

Dara Khosrowshahi, Uber'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. In connection with this decision, Khosrowshahi and the company entered into a letter agreement, effective as of May 2, 2020.