Uber cuts 2,500 planned jobs at Deep Ellum site, withdraws government incentives – NBC 5 Dallas-Fort Worth
Uber withdrew from all local and state government incentives on Thursday as the rideshare company announced it would scale back its plans for the planned Deep Ellum offices.
The company initially promised to create 3,000 jobs with the opening of a new hub in Deep Ellum, but said the “dramatic impacts” of the pandemic had reduced the capacity of the Epic office to 500 employees.
“We are focusing our efforts on our core mobility and delivery platforms and resizing our business to match our business realities, which led us to the difficult decision to downsize our future office capacity in Dallas to 500 employees, “a spokesperson for Uber said in a statement Thursday.
In August 2019, Uber signed economic incentive agreements at the local, municipal and state levels totaling more than $ 36 million in grants and tax breaks.
Of that $ 36 million, $ 24 million came from the state’s business incentive fund, the Texas Enterprise Fund, the largest amount received by a company operating in Dallas Fort-Worth since 2018.
Dallas City Council approved a $ 9 million program to lure Uber to North Texas in August 2019. Other incentives from Dallas County Commissioners included a 50% Dallas County tax abatement and an abatement. 90% commercial property taxes for 10 years.
But these tax breaks were subject to the creation of at least 2,500 jobs with a salary of at least $ 100,000 by January 2023.
Dallas Mayor Eric Johnson on Thursday announced that the city of Dallas was ending its hiring incentive agreement with Uber in a statement.
Johnson called the Uber-City of Dallas incentive program a victory for all groups involved in 2019. But he said he was “disappointed but not surprised” by Uber’s decision on Thursday due to “the economic record. of the COVID-19 pandemic. “
“Over the past year and a half, Uber has been a great partner for the city,” Johnson said in a statement Thursday. “We are delighted that Uber remains committed to Dallas and employing hundreds of people in our downtown area. We plan to continue working together in the years to come as we build for the future and make Dallas an internationally recognized hub for innovation and entrepreneurship. “
According to Dom DiFurio of the Dallas Morning News, Uber said it currently employs around 200 people in the planned offices of Deep Ellum.
DiFurio also reported that the City of Dallas expects a payment of $ 25,000 to allow for reimbursement of expenses by the company, according to a note sent to city council members by Eric Johnson, head of economic development and services. of Dallas neighborhood.