TECH

Uber to Cut 10% of Workforce, Shedding 3,300 Jobs

Uber is planning to lay off approximately 3,300 employees, which represents around 10% of its total workforce globally, as part of an effort to streamline management structures and enhance investments in its ride-sharing, delivery, and robotaxi sectors. This announcement was made in an internal email from CEO Dara Khosrowshahi, which was shared publicly on Wednesday.

The email indicated that these layoffs are part of a restructuring initiative aimed at reducing the number of management positions by 20%, with some individuals in these roles transitioning to positions as individual contributors moving forward.

Bloomberg was the first to report on the layoffs.

The ride-sharing leader is also cutting the size of teams that consist of one or two members by 50%, as well as letting go of personnel situated “more than seven layers down from the CEO,” according to Bloomberg. Khosrowshahi’s email mentioned that the company is planning to merge its engineering, science, and delivery departments. Additionally, Uber will consolidate its delivery operations across restaurant, retail, and direct service sectors.

Remote positions within the company are being eliminated as well, with Uber now permitting less than 1% of its workforce to continue working remotely.

“We’ve developed new products, ventured into new business areas, reached a larger customer base, and supported more earners, becoming a significantly larger and more robust company. However, this growth has added complexity: increased layers, more coordination, fragmented ownership, and structures that, while effective for a smaller organization, no longer function optimally at our current scale,” Khosrowshahi reportedly stated in the email.

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