Uber to cut over 3,000 jobs in major global restructuring

Uber is set to eliminate more than 3,000 jobs globally as part of a major restructuring aimed at reducing management layers, streamlining operations and directing more resources towards its core businesses.

The job cuts represent about 10% of the company’s worldwide workforce and will reduce its employee numbers to levels last recorded in 2021.

In an email to employees, Uber Chief Executive Officer Dara Khosrowshahi said the company had grown rapidly but, in the process, created too many management layers and small teams that had made decision-making more difficult.

He said the restructuring would position the San Francisco-based ride-hailing and delivery company to take advantage of its “biggest opportunities ahead.”

The move is one of Uber’s most significant organisational overhauls in recent years and reflects a shift towards a leaner business structure. Its shares gained nearly 2% following the announcement, suggesting investors responded positively to the plans.

The layoffs will affect both managerial and non-managerial employees. Uber also plans to merge many of its smallest teams into larger units, although it has not disclosed which locations will bear the biggest impact.

Khosrowshahi said the changes would make Uber “simpler” and “faster” while freeing up funds for investment in areas considered critical to the company’s future.

The restructuring comes as Uber increases investment in autonomous vehicle partnerships and expands its ride-hailing, delivery and robotaxi operations.

The company is also revising its workplace policy, requiring almost all employees to work from designated office hubs, with remote positions expected to account for only about 1% of its workforce.

Analysts estimate that the layoffs and restructuring could save Uber as much as $2 billion annually.

While several major technology companies have reduced their workforces amid significant spending on artificial intelligence, Uber had largely avoided major job cuts since the COVID-19 pandemic.

Following the latest reductions, Uber’s global workforce is expected to fall to just below 30,000 employees, roughly returning to the level it had before its latest phase of expansion.

Source: BBC