Uber (NYSE: UBER) disclosed:

On May 18, 2020, Uber Technologies, Inc. (the “Company”) announced plans to further reduce its operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the Company’s business. As part of this restructuring, the Company expects to reduce its workforce by approximately 3,000 full-time employee roles. In connection with these actions, the Company estimates that it will incur approximately $175 million to $220 million of charges. These estimated costs include approximately $110 million to $140 million related to severance and other termination benefits (excluding stock-based compensation expense), and up to approximately $65 million to $80 million related to site closures, including approximately $25 million to $30 million for write-offs of the leasehold improvements related to site closures. These charges are primarily cash-based, and the majority are expected to be recognized in the second quarter of 2020.

In addition, on May 6, 2020, the Company previously announced plans to reduce its customer support and recruiting teams by approximately 3,700 full-time employee roles. In connection with these actions, the Company estimates that it will incur approximately $35 million to $40 million of charges related to severance and other termination benefits (excluding stock-based compensation expense).

The actions described above, together with actions already taken to reduce the Company’s overall cost structure, were designed to generate an aggregate cost savings of at least $1 billion annually versus the Company’s original Q4 2020 planned cost structure. We do not believe these cost-saving measures will impair our ability to conduct any of our key business functions. There is no guarantee that we will achieve the cost savings that we expect.

In connection with the foregoing, all members of the Company’s Board of Directors agreed to forego 100% of their annual cash retainer for serving on the Board for the remainder of 2020.

In a statement, Dara Khosrowshahi, CEO, said: “Given the dramatic impact of the pandemic, and the unpredictable nature of any eventual recovery, we are concentrating our efforts on our core mobility and delivery platforms and resizing our company to match the realities of our business. That’s led us to some painful decisions today: we are stopping some of our non-core investments and reducing the size of our workforce by around 3,000 people, each of whom I want to personally thank for their contributions to Uber. As I said to our teams today, we are making these hard choices now so that we can move forward and begin to build again with confidence.”