Uber announced on Wednesday a significant organizational restructuring that will result in the elimination of 10% of its global workforce, affecting an estimated 3,300 employees. The move is part of a strategic pivot aimed at refining the company's focus and investments.
In a memo to employees, CEO Dara Khosrowshahi stated that the company is "removing layers, simplifying team structures, refining our global location strategy, and focusing our people and investments against the biggest opportunities ahead of us." This restructuring also involves a substantial reduction in the company's remote work policy.
Uber, headquartered in San Francisco, plans to concentrate its global teams in major hubs such as New York and San Francisco. Regional teams will be based in designated regional hubs, local teams in country hubs, and tech teams in tech hubs. The company anticipates that only about 1% of its workforce will remain fully remote following this transition.
Furthermore, Uber intends to reinforce compliance with its hybrid work policy, which mandates employees to be in the office three days a week. The company's stock saw a 2.4% increase on Wednesday morning following the announcement of these cost-cutting measures.