Uber to cut 3,700 jobs as lockdowns hit its ride-hailing business

Ride hailing giant Uber Technologies said on Wednesday it will cut 3,700 jobs and its chief executive, Dara Khosrowshahi, will forgo his salary for the remainder of this year.

"Due to lower trip volumes in its rides segment and the company’s current hiring freeze, [Uber] is reducing its customer support and recruiting teams by approximately 3,700 full-time employee roles," the company said in a filing to markets.

"In connection with these actions, the company estimates that it will incur approximately $20 million (Dh73.4m) related to severance and other termination benefits," it added.

Uber has been hit hard by a decline in its ride-hailing business during the pandemic as stay-at-home orders meant people cut down their travel.

The company, which floated on the Nasdaq exchange 12 months ago, also said it is "evaluating other cost[s]" as it attempts to drive down its operating expenses.

Uber declared losses of $8.5 billion on revenue of $14.1bn in its first year as a public company.

Over the years, it has pursued a strategy of acquiring rivals in competitive markets and pulling back from direct operations.

In line with such a strategy, the company completed its acquisition of Dubai-based ride hailing competitor Careem in a $3.1bn deal in January.

Careem announced its own plan to reduce headcount earlier this week. It cut more than 30 per cent of roles, with chief executive Mudassir Sheikha saying its core ride-hailing business had fallen by as much as 90 per cent and its delivery business by 60 per cent in some of markets.

Earlier this week, Uber Eats also said it would stop operating in the UAE and Saudi Arabia and transfer its existing customers to Careem Now - the food delivery arm of Careem.

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Global state-owned investor ranking by size

1.	United States
2.	China
3.	UAE
4.	Japan
5	Norway
6.	Canada
7.	Singapore
8.	Australia
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10.	South Korea

UAE currency

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Tamkeen's offering

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Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

How to wear a kandura

Dos

Wear the right fabric for the right season and occasion
Always ask for the dress code if you don’t know
Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts

Wear hamdania for work, always wear a ghutra and agal
Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying

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