Uber’s Middle East business Careem cuts 31% of workforce

                                                                                                           Careem employees walk past the company headquarters in Dubai.
  • Dubai-based Careem swill cut 536 jobs this week
  • Chief Executive Mudassir Sheikha said business was down by more than 80%

DUBAI: Uber Technologies’ Careem subsidiary on Monday announced it was cutting 536 jobs this week, representing 31% of the Dubai-headquartered company’s workforce.
The announcement came hours after Uber said it was shuttering its Eats delivery business in several markets, including the Middle East, and laying off dozens of staff.
Careem, which operates ride-hailing and delivery businesses primarily in the Middle East, said it was prioritising the security of the company and that parent Uber continues to believe in its business model.
“As we have discussed several times in the last few weeks, the crisis brought on by COVID-19 has put our dream and future impact at significant risk,” Chief Executive Mudassir Sheikha said in a blog on Careem’s website.
Sheikha, who founded the company in 2012, said business was down by more than 80% and warned that it was “alarmingly unknown” when it would recover.
“In this new reality, the surest way to secure Careem for the long term is to drive towards self-sustainability within a reasonable time frame,” he said.
Careem did not say how much it expected to save from the layoffs or which business units staff had been cut from.
The Careem BUS mass-transportation operation has also been suspended, it said.
Careem has also found “significant savings” from pausing new benefits, it said without disclosing details.
Uber earlier announced that it was closing its food delivery business in Saudi Arabia, Egypt and other countries, while its United Arab Emirates operations would move to Careem.
Global ride-hailing group Uber bought Careem in 2019 for $3.1 billion.

Z24 News

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Internal Chinese report warns Beijing faces Tiananmen-like global backlash over virus

Mon May 4 , 2020
                         In this file photo, a woman wearing a protective mask is seen past a portrait of Chinese President Xi Jinping on a street in Shanghai, China, March 12, 2020. Global anti-China sentiment is at its highest since the […]

Share

Social menu is not set. You need to create menu and assign it to Social Menu on Menu Settings.