Job Losses Strike a Blow to Gig Economy Darlings

Uber and Airbnb both announced massive layoffs this week, after Lyft did the same last week, as the coronavirus pandemic took a toll on very contemporary corners of the economy.

2 minute read

May 7, 2020, 9:00 AM PDT

By James Brasuell @CasualBrasuell


Uber Eats

Uber Eats offers a rare bright economic spot in the gig economy during the pandemic, for as long as delivery workers are staying healthy and safe. | Franklin Heijnen / Flickr

Two companies that rose to market and cultural dominance in the wake of the Great Recession are among the earliest to deal with the consequences of the coronavirus pandemic, as Airbnb and Uber this week announced massive layoffs. 

Theodore Schleifer reports for Recode: "Brian Chesky, the company’s founder and CEO, told staff on Tuesday that the company’s revenue would be halved and that it would terminate about 1,900 of its 7,500 staff members — one of the largest layoffs in total that Silicon Valley has seen since the Covid-19 pandemic struck. 

According to Schleifer, Airbnb was considered one of the most financial secure of the "unicorns" calling the Silicon Valley home. Chesky told company employees that the company is expecting to bring in half the revenue it expected to this year.

A day later, news broke that Uber would lay off even more of its employees. Brian Heater reports for TechCrunch: In an SEC filing dating back to last week, Uber disclosed plans to layoff 3,700 employees. The figure amounts to around 14% percent of the ride hailing giant’s total workforce. 

Citing a letter to staff from Uber CEO Dara Khosrowshahi, Heater is able to report that the cuts will come from community operations and recruiting. "Uber will also be closing around 40 percent of its Greenlight locations — used for in-person driver assistance," according to the article. 

Last week, Lyft announced layoffs for 1,000 employees, as reported by Faiz Siddiqui

The layoffs amount to a massive blow to the technology sector sometimes known as the gig, or sharing, economy, which rose to prominence at least in part due to economic benefits offered to users during the austerity of the Great Recession. All three companies had a significant role in reshaping the landscape of the housing and transportation markets in ways that couldn't have been predicted before the Great Recession.

More on the potential for the coronavirus to reshape the landscape for housing and transportation, and thus the future of these companies, is included in a follow up article by Rachel Lerman.

Wednesday, May 6, 2020 in The Washington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 18, 2025 - Diana Ionescu

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Yellow single-seat Japanese electric vehicle drivign down road.

The Tiny, Adorable $7,000 Car Turning Japan Onto EVs

The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.

June 6, 2025 - PC Magazine

SMall backyard cottage ADU in San Diego, California.

San Diego Votes to Rein in “Towering” ADUs

City council voted to limit the number of units in accessory buildings to six — after confronting backyard developments of up to 100 units behind a single family home.

June 18 - NBC San Diego

Large tower under construction with crane with American and Texas flags in downtown Austin, Texas against sunset sky.

Texas Legislature’s Surprising Pro-Housing Swing

Smaller homes on smaller lots, office to apartment conversions, and 40% less say for NIMBYs, vote state lawmakers.

June 18 - The Texas Tribune

Red brick five-story multifamily housing building in Edmonton, Alberta, Canada.

Even Edmonton Wants Single Staircase Buildings

Canada's second most affordable major city joins those angling to nix the requirement for two staircases in multi-family buildings.

June 18 - Canadian Broadcasting Corporation (CBC)