Uber employees fear layoffs as the company plans to shut down its 500-employee car leasing unit
Uber employees are nervous about an expected round of layoffs, according to a source familiar with the company.
This after news broke that the company is considering shuttering its US car leasing business.
The two-year old leasing program, founded under then CEO Travis Kalanick, is losing far more money than planned, reports the Wall Street Journal’s Greg Bensinger.
Uber currently has about 40,000 vehicles in the program, which it leases to drivers. The company had expected to lose about $500 per car but is losing about $9,000 per car, sources told Bensinger.
The problem? Being in the car leasing business was harder than Uber imagined. All told, about 500 people work for the unit. Uber is apparently looking for a buyer for the unit, or even a partner for it, but short of that, the company will be make big changes, Quart’s Alison Griswold reports. Some employees will find new roles within the company but layoffs are not out of the question, the source told Griswold.