TECH

Uber to Cut Workforce by 10%, Impacts 3,300 Employees

Uber plans to lay off around 3,300 workers, which represents about 10% of its global workforce, as part of a strategy to refine management structures and enhance investments in its ride-sharing, delivery, and robotaxi sectors. This announcement was shared in an internal email from CEO Dara Khosrowshahi, made public on Wednesday.

The email indicated that these job reductions are a component of a restructuring initiative aimed at reducing management positions by 20%, with some employees in these roles transitioning to individual contributor positions in the future.

Bloomberg was the first news outlet to report on the layoffs.

The ride-sharing leader is also cutting the size of teams consisting of one or two members by 50% and letting go of employees who are “more than seven layers down from the CEO,” as reported by Bloomberg. Khosrowshahi’s email mentioned that the company plans to unify its engineering, science, and delivery departments. Additionally, Uber will merge its delivery operations across the restaurant, retail, and direct service industries.

Positions offering remote work are also being eliminated, with Uber now permitting less than 1% of its workforce to work remotely.

“We’ve developed new products, ventured into new business sectors, expanded our customer base, and supported more earners, evolving into a significantly larger and more resilient organization. However, this growth has brought about complexity: added layers, increased coordination, fragmented ownership, and frameworks that, while effective for a smaller company, no longer function efficiently at our present scale,” Khosrowshahi reportedly stated in the email.

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