Uber is cutting around 3,300 jobs, equivalent to roughly 10 per cent of its global workforce, as part of a broad restructuring designed to simplify the company’s organisation, reduce management layers and lower costs. CEO Dara Khosrowshahi announced the changes in an email to employees, saying the restructuring would make Uber “simpler and faster” while freeing up resources for future growth.
The layoffs will result in a 20 per cent reduction in Uber’s overall number of managers, although the company has not disclosed how many managers will lose their jobs. Some managers will instead transition into individual contributor positions. However, the restructuring extends beyond management, with non-managerial employees also affected.
Why Uber is making the cuts
Khosrowshahi said Uber’s rapid expansion over the past five years has made the company increasingly complicated, adding layers of management and coordination that have slowed decision-making.
The restructuring is aimed at creating a leaner organisation with clearer responsibilities and faster decisions. Uber is eliminating positions that are primarily centred on coordination while expanding the responsibilities of some managers.
The company also plans to reduce by 20 per cent the number of employees who are seven or more reporting levels below the CEO. At the same time, the number of “micro-teams” consisting of just one or two employees will be reduced by nearly 50 per cent.
Most remote employees asked to return to offices
Uber is also merging certain teams to eliminate duplication. Among the changes, its three Delivery Operations teams covering restaurants, retail and direct delivery will be brought together. The company is also merging its Core Services Engineering and Science teams.
The restructuring includes changes to Uber’s workplace strategy as well. Global teams will be concentrated in major hubs such as New York and San Francisco, while regional, country and technology teams will operate from designated hubs.
Most employees currently working remotely will be asked to return to an office, with Uber expecting only around 1 per cent of its workforce to remain remote. The company’s existing hybrid policy, which requires employees to work from the office three days a week, will remain in place.
Savings to fund growth and robotaxis
Uber says the money saved through the layoffs will be redirected towards growth, innovation and its autonomous-vehicle ambitions. The company plans to increase investments in drivers, couriers and merchants, strengthen its core businesses and accelerate its push into autonomous transportation.
Uber has committed more than $10 billion towards robotaxi partnerships over the coming years and has invested in companies such as Avride, Lucid, Nuro and Rivian.
The latest layoffs follow smaller workforce reductions in Uber’s customer service and human resources divisions earlier this year. Once the cuts are completed, Uber is expected to have just under 30,000 employees, bringing its workforce back to roughly the level it had in 2021.
