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Uber Shuts Down LA Office Leaving 80 Workers Unemployed Without Any Notice

Neer Varshney

Uber Technologies Inc. (NYSE: UBER) shut down an office in Los Angeles last week leaving about 80 workers unemployed with no advance notice, the Los Angeles Times reported Tuesday.

What Happened

The affected employees all worked in customer support and were paid on an hourly basis.

"We have decided to close the downtown L.A. office and we will be moving the outreach and innovation work to our Manila [Center of Excellence], where we can continue to support the business as it grows," manager Ruffin Chevaleau informed them last Thursday, as reported by the L.A. Times.

"I know that this is a shock. This meeting is to inform you all that today is the last day in this office."

The L.A. Times received audio recordings of the meeting from an employee who chose to be anonymous due to the fear of losing a severance package from the ride-hailing company.

The employees could meet with an Uber recruiter and apply for new jobs within the company, Chevaleau informed them, according to the L.A. Times. If they were awarded one, Uber would cover the relocation costs.

The move comes as Uber has been under fire for worker rights, especially regarding the drivers who work as independent contractors.

The company has protested a California law targeting the gig-economy, maintaining that it's a technology platform that treats both drivers and riders as customers of its platform.

Price Action

Uber's shares closed 1.31% higher at $40.18 on Tuesday and were mostly unchanged in the after-hours session.

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