Careem, a Dubai-based ride-hailing company operating across the Middle East, North Africa, and Pakistan, laid off 536 employees on May 5, 2020, representing 31% of its total workforce. The drastic cuts were a direct response to the COVID-19 pandemic, which caused government lockdowns and severely reduced demand. The company's core ride-hailing business plummeted by up to 90% in some markets, with overall business down 80%, leading to rapidly multiplying losses. To conserve cash and ensure survival, Careem made the difficult decision to reduce its largest cost—people—while pausing further investments. The CEO stated that a full recovery to pre-crisis business levels was not expected until late 2021.
