Careem lays off around 150 employees – Research Snipers

Careem lays off around 150 employees

The Dubai-headquartered ride-hailing company ‘Careem’ has reportedly laid off around 150 employees. It is just weeks after its $3.1 billion acquisition by Uber has been officially closed.

A source inside the company has confirmed this news. Careem CEO Mudassir Sheikha sent an email to his employees saying that this step has been taken in order to align with the Super app vision of the tech giant.

Over 60 people parted ways with the company in December alone. Due to financial constraints, Careem has been compelled to exit from Oman and Turkey as it felt that the regulatory environment was not favorable.

Must read: Uber solidifies Careem buy in the Middle East

Careem has more than 3,500 employees out of which almost 1,100 work in offices across Pakistan, as per LinkedIn.

The email read, “The changes mean that some of our colleagues now have different or expanded roles at Careem, and others will leave us today as their roles no longer exist.”

Explaining the reasons for these choices, the chief executive continues, “Like many technology companies at our stage of growth, Careem is facing two new realities. First, the expansion of our vision from a regional ride-hailing operator to a multi-vertical Super App platform has implications on how we allocate resources and organize ourselves. Second, our new investors, the public markets, expect companies like us to become profitable after almost a decade of high-growth scale.”

Also read: Careem Bus Service Launches in Karachi

The Careem’s Chief Finance and Strategy Officer also made the announcement that he is stepping down in a LinkedIn post.

As per a source, “Before the close of Uber deal, some of the colleagues from Pakistan were transferred to different locations, both internally and externally.”

Careem is also facing competition from new entrants in the ride-hailing company like Airlift and Swvl.

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