|27 January, 2020

Dubai's ride hailing app Careem to slash workforce

In the first week of Janurary, Uber completed its $3.1bln acquisition of Careem's businesses across the Middle East

A man uses Careem application on a mobile phone in Cairo, Egypt November 6, 2019.

A man uses Careem application on a mobile phone in Cairo, Egypt November 6, 2019.

REUTERS/Mohamed Abd El Ghany

Dubai-based ride hailing app Careem will be slashing jobs and 15 percent of its workforce will be affected as part of organizational restructuring, its CEO told Zawya.

In the first week of Janurary, Uber completed its $3.1 billion acquisition of Careem’s businesses across the Middle East.

Careem will retain operational and brand independence even as it becomes a wholly owned subsidiary of the Uber. While Careem co-founder Mudassir Sheikha remains chief executive, its board will be made up of three representatives from Uber and two from Careem.

Mudassir Shaikha, chief executive officer of the company, said: "We are modifying the shape and skills of the team so we can operate even more efficiently to simplify and improve even more lives.  In this new era, we are focused on profitability and sustainable growth - this means investing in new skills and technologies and cutting in others. As we change the shape of the organisation, 15 percent of our colleagues will be affected: 10 percent of colleagues are being reassigned to new roles and 5 percent of colleagues will leave Careem as their roles no longer exist.”

Sheikha had earlier tweeted: “It was hard to say goodbye to colleagues but was necessary to expand the scope of Careem's impact on the region.”

“No words can express the deep gratitude that we feel towards these colleagues. They believed in us, they fought with us from the trenches, they inspired us. I know they will play a meaningful role in the next few unicorns of the region. Hire or partner with them if you can!” Sheikha's Twitter post said.

(Writing by Seban Scaria seban.scaria@refinitiv.com; editing by Daniel Luiz)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Technology