Uber, Tripadvisor hit with massive layoffs as virus outbreak dries up business

UBER and Tripadvisor, two heavyweights in the transport and travel industries, have turned to implementing severe cuts in their workforce as the coronavirus outbreak takes its toll on their businesses.

Ride-hailing firm Uber's tentative plans to axe 20 per cent of its global staff count could lead to more than 5,400 of 27,000 employees losing their jobs, tech news outlet The Information reported on Tuesday.

According to a filing with the Securities and Exchange Commission, the firm's chief technology officer (CTO) and longest-serving executive, Thuan Pham, has also resigned effective May 16. He joined Uber in 2013 as CTO.

Uber's office in Singapore is home to its Asia-Pacific hub. The firm launched the office in April last year despite having exited the market, and planned to hire both specialist and entry-level talent for its regional business teams and corporate functions in Singapore. About 165 staff were based there as at April 2019.

Fellow tech firm Tripadvisor announced on Tuesday that more than 900 employees, which amount to about a quarter of the workforce, will be impacted by layoffs.

Chief executive officer and co-founder Steve Kaufer, who has declined a salary for the remainder of 2020, said in a letter to employees that nearly 300 staff outside the US will be engaged in a consultation process to determine their employment status. Tripadvisor has 52 offices around the world.

The company declined to comment on the estimated workforce reduction in the Singapore office, and the number of employees based there. Tripadvisor's new office at the Manulife Tower (then called the PwC Building) in 2013 spanned 6,000 square feet and served as its headquarters for the Asia-Pacific.

The company will be offering transition packages to retrenched staff, including severance pay and outplacement support. In the US and Canada, it will also provide health insurance continuation for a period of time.

Some employees will be put on furlough.

"I've been in awe, watching you all work day and night to ensure travellers and our travel partners receive the high level of service expected of our brand as teams remain virtually connected and productive," Mr Kaufer told staff in his letter.

"But sometimes, the most valiant of efforts aren't enough to counter outside circumstances and, as a public company, it is our responsibility to adjust, adapt and evolve to the environment that surrounds us."

The Covid-19 outbreak has dealt a swift blow to the economy, with the deepest cuts borne by businesses in the travel and retail sectors. Firms quickly turned to axeing staff as the flight to conserve cash began.

The Business Times reported that Indonesian unicorn Traveloka's Singapore office was hit by layoffs, and SoftBank-backed travel booking startup Klook is implementing staff cuts and furloughs that will impact up to 20 per cent of workforce.

Meanwhile, Grab founder Anthony Tan has sounded a grave note of caution as the effects of the outbreak wear the company down. The firm, still loss-making, will have to reduce costs, manage capital efficiently and make the "necessary operational adjustments" in order to weather the storm, Mr Tan told investors.

"Covid-19 is the single biggest crisis to affect Grab in the eight years of our existence," he said.