Uber India, one of the company’s last stands in the continent, announced on Tuesday that it is cutting 600 permanent workers due to the economic impact of coronavirus pandemic.
The job termination would affect various departments such as driver and rider support segments, business development, legal, finance, policy and marketing. This means that Uber India would let go nearly 25% of its workforce in the country.
Uber’s president for India and South Asia, Pradeep Parameswaran, apologized to the departing staffs for the sad day. To ensure their well-being, the company would provide 10 weeks of salaries and six months of medical insurance.
Despite continuing to operate in roughly 50 cities in the country, the company has been greatly suffering from the lockdown. As many people are staying at home due to COVID-19 lockdown, Uber’s services have been greatly decreasing.
Ever since, Uber has been partnering with local online grocery company Bigbasket. By launching a new package delivery in India, the company is struggling hard to survive during the pandemic.
Also Read: Uber is Yet to Give Up on Asia
Uber India Job Termination Shows Economic Burden due to the Nationwide Lockdown
Amid the lockdown, Uber is not the only company in India who has to terminate a number of its workers. About 122 million Indians lost their job last month according to Center for Monitoring Indian Economy.
This massive, nationwide job loss will worsen poverty, something that President Narendra Modi has been combating since 2014. Considering the economic devastation, the government’s years of struggle to eradicate poverty might go to waste in a matter of months.
Looking at the situation, World Bank estimates that approximately 12 million Indians might be in poverty at the end of the year. 80% of households in rural areas receives the worst impact to the point that the might not survive without financial aids.
Economic downfall in India is not only the problem of the government or private sectors. It, additionally, is the problem of the people, the country as a whole.
Also Read: Coronavirus Lockdown: Indian Unemployment Cross 24,6%
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