Careem to lay off 31% of workforce as business drops

- Advertisement -

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.

READ  Careem Pay Launched In Bahrain

Chief Executive Mudassir Sheikha, who founded the company in 2012, said the business was down by more than 80% and warned that it was “alarmingly unknown” when it would recover.

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.

READ  Careem Facts

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.

Comments

- Advertisement -