Uber is cutting approximately 3,300 jobs globally, representing a 10 per cent reduction in its workforce, as part of a sweeping management restructuring. The decision was announced by Chief Executive Officer Dara Khosrowshahi in an internal email shared with Bloomberg News. The overhaul aims to simplify the company’s structure by eliminating redundant layers of management and realigning financial commitments across its ride-sharing, delivery, and robotaxi divisions. The restructuring includes a 20 per cent reduction in managerial positions, with some managers transitioning to non-managerial roles. While the exact proportion of managers affected by layoffs remains undisclosed, the changes also extend to non-management staff. To streamline operations, Uber plans to reduce micro-teams, small units of one or two individuals, by roughly half. Additionally, the company is limiting the depth of hierarchical reporting, ensuring that no employee is more than seven levels removed from the CEO. Engineering, science, and delivery teams are also undergoing consolidation, with the merging of operational units responsible for restaurant, retail, and white-label delivery services. As part of this transformation, Uber is shifting toward a more in-office model, allowing only about 1 per cent of its workforce to continue remote work. This policy reflects broader efforts to centralize operations and enhance collaboration. The company emphasized that these cost-saving measures will be reinvested into areas critical to long-term growth, such as improving support for drivers, couriers, and merchants globally. Investments will also focus on strengthening Uber’s core platforms and advancing its vision of an autonomous transportation network. The move follows previous targeted layoffs in customer service and human resources during the early months of this year. Unlike some major tech firms that have increasingly used automation and artificial intelligence to justify large-scale workforce reductions, Uber has historically maintained a relatively stable employment base since the onset of the pandemic. In May, the company signaled a moderation in hiring practices, aligning with broader industry trends of cautious expansion. With today’s cuts, Uber’s total workforce is projected to fall below 30,000 employees, returning to numbers last seen in 2021. Khosrowshahi highlighted that while artificial intelligence was not explicitly mentioned in the announcement, the restructuring is intended to leverage greater use of the technology in daily operations. This strategy aligns with Uber’s broader ambitions to lead in autonomous mobility. Earlier this year, the company committed over $10 billion to robotaxi partnerships, collaborating with firms such as Nuro, Rivian Automotive, and others. These investments underscore Uber’s strategic pivot toward self-driving vehicles as a cornerstone of its future. In parallel, Uber has been adjusting its financial priorities, divesting stakes in certain ventures and increasing investments in emerging technologies. For instance, the company recently bolstered its ties with Avride and Lucid Group, signaling a shift toward supporting innovation in electric vehicles and autonomous systems. These moves reflect a broader recalibration of Uber’s business model, emphasizing efficiency and technological advancement amid evolving market conditions. The immediate effect of the job cuts is evident in the stock market, where Uber shares rebounded in premarket trading, rising as much as 1.7 per cent following the announcement. Investors appear to view the restructuring as a step toward improved profitability and long-term sustainability. As Uber continues to navigate challenges in a competitive landscape, the emphasis on simplification and innovation underscores its commitment to adapting to changing consumer demands and regulatory environments.
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