Uber to cut over 3,000 jobs in major global restructuring
The company says cutting roles would make its operations "simpler and faster".
Uber is set to eliminate over 3,000 positions as part of a significant worldwide reorganization, reducing its workforce to levels last observed in 2021.
The ride-sharing and delivery giant is shedding more than 3,000 jobs globally in a substantial restructuring effort aimed at streamlining management tiers and reallocating expenditures towards its primary operations. This reduction represents approximately 10% of its international staff, returning employee numbers to those seen in 2021.
In an internal email, CEO Dara Khosrowshahi informed employees that the company had expanded rapidly, leading to an accumulation of excessive management layers and numerous small teams, which hindered efficient decision-making. He stated that these cutbacks would better position Uber, headquartered in San Francisco, US, for its "biggest opportunities ahead of us."
This initiative represents one of Uber's most extensive restructurings in years, indicating a pivot towards a more agile operational framework. Following the announcement, shares climbed nearly 2%, suggesting investor approval of the proposed changes.
The layoffs will impact both managerial and non-managerial staff. Uber intends to consolidate many of its smaller teams into larger units, though it has not specified which locations will be most affected by the job reductions. Khosrowshahi explained that these adjustments are designed to make Uber "simpler" and "faster," while also freeing up capital for reinvestment in areas deemed crucial for its future.
This restructuring coincides with Uber's increased investment in autonomous vehicle collaborations and the expansion of its ride-hailing, delivery, and robotaxi services. Uber is also refining its office strategy, mandating nearly all employees to work in person at designated hubs and restricting remote positions to about 1%.
Analysts project that these layoffs could generate up to $2 billion in annual savings. Unlike many major tech firms that have reduced staff amidst substantial spending on artificial intelligence (AI), Uber had largely avoided significant workforce reductions since the pandemic. The latest changes will bring its total workforce to just under 30,000 individuals, roughly equivalent to its size before its most recent growth phase.
Uber is also surveying customers about their interest in driverless taxis.