Uber is cutting more than 3,000 jobs worldwide in a major corporate restructuring designed to streamline its leadership team, reduce costs and refocus investment on its core businesses.
The Uber layoffs represent approximately 10% of the company’s global workforce and will bring staffing levels back to figures last recorded in 2021.
Uber CEO Dara Khosrowshahi said in an internal email that the ride-hailing and delivery company had expanded rapidly, creating too many organizational layers and smaller teams that slowed decision-making.
Khosrowshahi said the restructuring will create a leaner business better positioned to pursue the “biggest opportunities ahead of us.”
The job cuts are among Uber’s largest reorganizations in recent years and mark a significant shift toward a simpler, more efficient operating model.
Uber shares rose nearly 2% following the announcement, suggesting investors responded positively to the proposed cost-cutting measures.
The layoffs will affect both managers and non-managers. Uber also plans to combine many of its smallest teams into larger groups, although it has not yet disclosed which offices or locations will experience the biggest impact.
Khosrowshahi said the changes are intended to make Uber “simpler” and “faster” while freeing up money for investment in strategic growth areas.
The restructuring comes as Uber increases spending on self-driving vehicle partnerships and expands its ride-hailing, food delivery and robotaxi operations.
The company is also changing its workplace policy, requiring almost all employees to work in person at designated hubs and limiting fully remote positions to approximately 1% of its workforce.
Analysts estimate that the Uber job cuts could deliver annual savings of up to $2 billion.
Unlike many major technology companies that have reduced headcount while increasing artificial intelligence spending, Uber has largely avoided significant layoffs since the pandemic.
After the restructuring, Uber’s workforce is expected to fall to just under 30,000 employees, roughly matching staffing levels before the company’s recent expansion.
Source: www.bbc.co.uk