Uber Technologies is cutting approximately 3,300 jobs, or about 10% of its global workforce, as part of a major restructuring designed to simplify the company’s organization and reduce layers of management. The move represents Uber’s largest workforce reduction since the COVID-19 pandemic.
Chief Executive Officer Dara Khosrowshahi told employees that Uber’s rapid expansion had created a more complicated corporate structure, with additional management layers and smaller teams slowing decision-making. The restructuring is intended to create a simpler organization and allow the company to operate more efficiently.
The overhaul is expected to reduce Uber’s number of managers by approximately 20%. Some managers will move into individual-contributor positions, while other employees including non-managerial staff will also be affected by the layoffs.
Uber is also consolidating parts of its business and reducing the number of small teams. The company plans to redirect savings from the restructuring toward its core businesses, including ride-hailing, delivery and autonomous-vehicle technology.
The changes come as the transportation industry faces increasing competition from autonomous vehicles. Companies developing robotaxis are expanding their operations, creating pressure on traditional ride-hailing platforms to adapt. Uber has been investing heavily in autonomous transportation and intends to devote more resources to that area as the technology develops.
Uber is also changing its workplace policy as part of the restructuring. Remote work is expected to become far less common, with the company planning to limit remote positions to roughly 1% of its workforce.
Despite the scale of the layoffs, Uber has characterized the move primarily as an organizational overhaul rather than a response to a collapse in demand. The company says it wants to eliminate unnecessary bureaucracy, speed up decisions and ensure that more resources are directed toward long-term growth.
The restructuring marks an important shift for Uber as it prepares for a transportation market increasingly shaped by automation. By reducing management layers and concentrating spending on ride-hailing, delivery and robotaxis, the company is seeking to become leaner while positioning itself for the next phase of competition.
Source: bloomberg
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