Cab aggregator Uber India on Tuesday announced that it is laying off around 600 full-time employees, or nearly 25% of its total workforce in the country, as demand for app-based rides have dropped sharply across the world due to the coronavirus pandemic, IANS reported. This came after rival Ola last week laid off 1,400 employees, or about 35% of its workforce, as lockdown halted 95% of its business.

“The impact of Covid-19 and the unpredictable nature of the recovery has left Uber India with no choice but to reduce the size of its workforce,” Uber India and South Asia President Pradeep Parameswaran said in a statement. “Around 600 full time positions across driver and rider support, as well as other functions, are being impacted.”

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Parameswaran said those who lost their jobs will be paid around 10 weeks of salary, along with medical insurance coverage for the next six months and outplacement support.

The company said the layoffs were a part of the previously announced global job cuts. “I want to apologise to departing colleagues and extend my heartfelt thanks to them for their contributions to Uber, the riders, and the driver partners we serve in India,” Parameswaran added. “We made the decision now so that we can look to the future with confidence.”

With this, Uber has globally laid off over 6,700 employees. Last week, Uber Technologies Inc – parent company of Uber India – said it will concentrate on its core businesses in ride-hailing and food delivery and cut 23% of its workforce in an attempt to become profitable despite the coronavirus pandemic. Chief Executive Officer Dara Khosrowshahi said the company plans to reduce investments in several “non-core projects”.

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A number of other companies, including food delivery services Swiggy and Zomato, and some media firms have fired employees over the past few weeks, despite a government appeal not to do so.

Also read: Here is a list of firms that have laid off employees or enforced pay cuts