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Sun 26 Jan 2020 02:01 PM

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Careem to cut 5% of workforce

CEO Mudassir Shaikha confirmed a further 10 percent to be reassigned to new roles

Careem to cut 5% of workforce

Image: ITP Media Group

Dubai-based ride hailing app Careem is to cut five percent of its workforce.

Mudassir Shaikha, chief executive officer of the company, confirmed that a further 10 percent of staff would be “reassigned to new roles” within the organisation.

In a statement to Arabian Business, Shaikha said: “As Careem becomes the region’s everyday Super App, 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 focussed 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.”

The statement did not give any detail on the number of staff affected by the latest announcement. However, according to a report from last year, the company boasted a workforce of some 4,000 employees.

The news comes just weeks after the $3.1 billion takeover of Careem by Uber.

In a social media posting, Shaikha said: “It was hard to say goodbye to colleagues but was necessary to expand the scope of Careem's impact on the region.”

He added further: “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!”

It was revealed last week that Careem is to pull out of Oman by February 3 following what was described as “the absence of the regulatory factors that provide us with a healthy investment environment”.

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