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Uber CEO Dara Khosrowshahi. Photo: Riccardo Savi/Getty Images for Concordia Summit

Uber will lay off 3,700 employees, while CEO Dara Khosrowshahi will waive his salary for the remainder of the year, according to the company's most recent filing with the Securities and Exchange Commission.

The big picture: The cuts, which will be to the customer support and recruiting teams, represent about 14% of Uber's 26,900 employees, per CNBC. Much of Uber's ride-hailing business has vanished as people stay indoors during the coronavirus pandemic, even as the company's food delivery sector has seen a boom.

  • Uber's gross bookings are down 80% globally, The Information reported last month.
  • The company also recently withdrew its financial forecast for the rest of the year, a signal that it doesn’t anticipate the downturn in business reversing anytime soon.

What to watch: Uber will report its earnings on Thursday. The company's stock was down more than 3% Wednesday morning.

What they're saying: In a memo to employees, Khosrowshahi suggested there would be more cuts down the line, according to CNBC.

  • “[A]s I said at yesterday’s All Hands, this is one part of a broader exercise to make the difficult adjustments to our cost structure (team size and office footprint) so that it matches the reality of our business (our bookings, revenue and margins),” Khosrowshahi wrote. “We are looking at many scenarios and at each and every cost, both variable and fixed, across the company.”
  • “We want to be smart, to move fast, to retain as many of our great people as we can, and treat everyone with dignity, support and respect. As I said yesterday, you can expect we will have a further, final update for you within the next two weeks.”

Go deeper

Breaking down Uber and Lyft's threat to suspend services in California

Illustration: Lazaro Gamio/Axios

Uber and Lyft are ratcheting up the fight with California’s state government over the classification of drivers with a move that would deprive Californians of their ride-hailing services (and halt driver income).

Driving the news: On Wednesday, both companies said that if a court doesn’t overturn or further pause a new ruling forcing them to reclassify California drivers as employees, they’ll suspend their services in the state until November’s election, when voters could potentially exempt them by passing a ballot measure.

Lyft beats Wall Street expectations for Q2

Photo: DON EMMERT/AFP via Getty Images

Lyft Wednesday posted narrower losses and higher revenue than expected for the second quarter, though revenue did fall 61% from the same period last year.

Why it matters: Lyft's business has been hard hit by the coronavirus pandemic as people stay home.

3 hours ago - Politics & Policy

McConnell drops filibuster demand, paving way for power-sharing deal

Senate Majority Leader Chuck Schumer (R) and Minority Leader Mitch McConnell attend a joint session of Congress. Photo: Olivier Douliery/AFP via Getty Images

Senate Minority Leader Mitch McConnell has abandoned his demand that Democrats state, in writing, that they would not abandon the legislative filibuster.

Between the lines: McConnell was never going to agree to a 50-50 power sharing deal without putting up a fight over keeping the 60-vote threshold. But the minority leader ultimately caved after it became clear that delaying the organizing resolution was no longer feasible.

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