Uber announces major job cuts and management overhaul

Uber Technologies is cutting approximately 3,300 jobs worldwide, representing about 10% of its staff, in a major restructuring aimed at simplifying its management structure and redirecting resources toward areas including autonomous vehicles, according to CEO Dara Khosrowshahi.

The reductions bring the company's global headcount to just under 30,000, about the same level as in 2021, as reported by Bloomberg News. Employees whose roles are affected have already been notified, except in countries where local procedures must first be followed, Khosrowshahi said in an email to staff.

This move follows smaller, more targeted cuts that Uber has made this year in its customer service and human resources departments. In May, the company also said it planned to slow hiring.

CEO cites growth-induced complexity

Khosrowshahi said Uber's revenue has nearly tripled over the past five years, but this expansion has created organizational layers that hinder efficiency. In his email, he stated that the company's growth has led to "more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale."

He told employees that the restructuring would result in "a leaner organisation" with "clearer ownership, faster decisions, and more time spent building rather than coordinating."

The CEO also said the changes would "generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years," including investments in drivers, couriers, and merchants worldwide. He mentioned work to build an "autonomous future" as a key focus.

Management layers reduced and teams combined

As part of the overhaul, Uber aims to flatten its organizational structure. The company has already reduced the number of employees sitting seven or more layers below the CEO by 20% and cut the number of "micro-teams" — groups with only one or two direct reports — by nearly half. The cuts will also reduce the number of managers by 20%, with some being moved to individual-contributor roles, according to an Uber spokesperson. The company did not disclose how many managers would be laid off.

Uber is also combining teams where separate operations have created duplication. Specifically, its three delivery-operations teams covering restaurants, retail, and its white-label delivery service will be merged, and its Core Services Engineering and Science teams will also be brought together.

Remote work restricted and robotaxi investments pledged

In an ongoing push to get more staff back into offices, Uber is mandating that only about 1% of employees can work remotely going forward. Most existing remote workers are being asked to move to an office, while hybrid employees will continue to be required to work from the office three days a week.

Uber has committed more than $10 billion to robotaxi partnerships in the coming years. The company has reduced its stakes in some companies and invested in Avride, Lucid Group, Nuro, and Rivian Automotive as part of its autonomous vehicle strategy.

Following the announcement, Uber shares rose as much as 1.7% in premarket trading, according to Bloomberg News.