So businesses all over the world are facing some serious problems in coping up with the problems created by the Corona Virus and Careem is one company which has taken drastic measures to ensure survival for the company as a whole. The company have laid off over 536 employees, a 31% of the company’s total workforce.
This news came from Careem’s, co-founder and CEO MudassirSheikha in an online meeting with employees.In a note, CEO Mudassir Sheik hastated that “We delayed this decision as long as possible so that we could exhaust all other means to secure Careem. The crisis brought on by COVID-19 has put our dreams and future impact at significant risk.”
He further added “Our business is down by more than 80% and the recovery timeline is alarmingly unknown. Our parent company Uber, believes in our Super App vision and is committed to the region, but like others in the industry, is also impacted by the crisis,Over the last seven weeks, we have looked critically at all our costs and actioned everything to reduce or stop non-essential spending. This also includes pausing indefinitely the new benefits that we announced earlier in the year. While we have achieved significant savings from these efforts, they have sadly not been enough,”.
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The company made the decision with respect to the following strategic managementfor such critical situations and principles which were agreed at the outset to protect Careem’s future.
- Protect their strategic bets and opportunistically accelerate
- Protect and increase obsession on customer experience.
- Force radically different and sustainable ways to run the business.
- Maximize colleague productivity (in order to do more with less.
Careemare yet to disclose how much it the company will be able to save from layoffs and they also did not release any breakdown of the layoffs geographically, once we get a hold of that we will be able to see the wider picture, on how much damage the virus has done.
The CEO said in this regard that, “Based on these principles, I gave guidance to each of the leaders and made a distinction between tech and non-tech colleagues; the idea being to protect our tech colleagues in relative terms so that we can continue to invest in our products, and emerge from the crisis with even better products,”.