On Monday, Careem announced that it had been forced to cut its workforce by 31% and suspend its mass transportation business due to the impact that COVID-19 had left on the industry.
CEO and co-founder of Careem, Mudassir Sheikha, in a blog post wrote that the layoffs would affect 536 of its employees.
Sheikha wrote that their parent company Uber believed in their Super App vision but was also affected by the pandemic.
The Dubai-based ride-hailing transportation network company (TNC) was acquired by Uber last year.
While talking to Khaeej Times, Sheikha said that the decision to cut off employees was “a last resort.”
We delayed this decision as long as possible so that we could exhaust all other means to secure Careem.Mudassir Sheikha
Sheikha told that business had dropped by 80% and since the recovery timeline remained alarmingly unknown; they had to take this decision.
These are the people that helped build Careem and create massive change and impact for our communities across the region. We greatly value their work and dedication and sincerely hope we will be able to hire those people back once we build a sustainable basis for our future.
The co-founder of Careem said that those affected by the layoffs will receive at least three months of severance pay and one month of equity vesting.
Moreover, where relevant, the company will ensure extended visa and medical insurance for departing employees and their families until the end of the year.
He added, “We also recognize the value of the Careem alumni network and encourage you to join a Slack community that has been set up specifically for former colleagues. When we are hiring again, we plan to post all opportunities on that channel and we will be encouraging alumni to do the same for their new companies.”
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