Uber cuts 3,300 jobs to simplify operations and boost productivity

Uber has announced the elimination of approximately 3,300 positions across the globe, with the aim of streamlining its operations and enhancing productivity. This reduction represents roughly 10pc of the company's total workforce. CEO Dara Khosrowshahi stated that the layoffs will result in a more "leaner organization," allowing for clearer ownership, swifter decision-making, and increased focus on building rather than coordinating.

The company's push towards AI-driven productivity was noted, although Khosrowshahi did not directly link the layoffs to this technology. In July, Uber had reduced about 10pc of its community operations team in alignment with this AI-driven strategy. The layoffs primarily affect Uber's management layer and micro teams, with a focus on consolidating teams into fewer key hubs.

This includes New York and San Francisco as primary regional centers, with other locations experiencing a reduction in local and tech teams. Additionally, Uber is encouraging most of its remote employees to transition to office-based work, with only around 1pc of its workforce remaining fully remote. The company has not revealed specific data on employment in Ireland, but an earlier statement from Uber's head of Ireland, Kieran Harte, indicated that the company employs over 400 people in its Limerick office.

Following the announcement, Uber's shares experienced a marginal gain of around 2pc in pre-market trading, despite the overall company's share price having fallen nearly 8pc over the past year. The move comes after Uber reported a 12pc year-on-year revenue growth to $14.2bn, and as the company allocates over $10bn to robotaxi development.