Uber CEO reportedly favored rank-and-file layoffs over pay cuts for top execs

Uber CEO Dara Khosrowshahi reportedly vetoed a request from the ride-hailing large’s top executives to chop their very own salaries to be able to keep away from shedding rank-and-file employees, paving the way in which for hundreds of pink slips.

Quite a few the ride-hail large’s engineering leaders final month instructed Khosrowshahi that they and different managers had been prepared to have their very own pay slashed to be able to spare their employees from Uber’s wide-ranging culling of its headcount, based on The Information (paywall).

“The answer is no,” Khosrowshahi stated in response, based on the report. “What we’re doing through is fundamentally realigning the company so that our cost base matches the new reality of the world post COVID. We do not want to take temporary measures.”

Khosrowshahi likewise signaled that a part of his plan consists of “remaking the engineering team so that over time more jobs would be located overseas,” based on the report.

Uber earlier this month laid off 3,700 employees from its buyer assist and recruiting groups, and expects to proceed the culling with cuts to its engineering, merchandise, operation and self-driving models that can be accomplished by May 18. The cuts might find yourself representing as a lot as 30 p.c of Uber’s workforce.

The CEO additionally waved off worker questions on whether or not different executives would comply with his lead and both forgo their salaries or take pay cuts. That’s even if any wage cuts on the top could be “largely symbolic,” based on the report.

“The company’s top executives typically earn between $1 million and $2.5 million a year from salary and bonus pay,” the report stated. “That represents a small fraction of their overall compensation, which is mainly in the form of stock awards.”

Khosrowshahi has reportedly been discussing plans with Uber’s engineering executives to outsource jobs starting later this 12 months. Over time, because the engineering group grows, extra roles can be stuffed abroad.

Jobs leaving the US would come with work on Uber’s core infrastructure corresponding to its knowledge facilities, based on the report.

Uber’s ride-hailing enterprise is down greater than 80 p.c in current weeks as tens of thousands and thousands world wide are locked indoors.

A consultant for Uber didn’t instantly reply to The Post’s request for remark.