Uber announced a significant global restructuring that will eliminate over 3,000 jobs, representing approximately 10% of its workforce. The company stated the overhaul is designed to shrink management layers, streamline decision-making, and reallocate spending toward its central operations.
In an internal email to staff, Chief Executive Dara Khosrowshahi explained that the rapid expansion of the company had led to excessive management layers and numerous small teams, which had slowed down operations. The job cuts are intended to make Uber "simpler" and "faster," according to Khosrowshahi, and position the San Francisco-based company for future growth opportunities. This restructuring marks one of Uber's most substantial overhauls in years, signaling a move toward a leaner operational model.
The reductions affect both managerial and non-managerial roles. Uber plans to consolidate many of its smaller teams into larger, more integrated groups. While the company has not specified the most impacted geographic locations, the changes are expected to generate up to $2 billion in annual savings, according to analysts.
The cuts come as Uber increases investment in autonomous vehicle partnerships and expands its existing ride-hailing, delivery, and robotaxi services. The company is also revising its office policy, requiring most employees to work in person at designated hubs, with remote positions limited to about 1% of the workforce.
Unlike many technology firms that have recently reduced staff amidst heavy artificial intelligence spending, Uber had largely avoided major layoffs since the pandemic. The latest workforce adjustments bring Uber's total employment back to just under 30,000 people, a level similar to its staffing before its most recent expansion phase. Following the announcement, Uber shares saw an increase of nearly 2%, suggesting investor approval of the proposed changes.