Uber Cutting 10% of Staff to Shift Spending to Robotaxis

Uber, the ride-hailing giant, is undergoing a significant restructuring by cutting approximately 3,300 jobs, or 10% of its workforce, according to Bloomberg News. The company's CEO, Dara Khosrowshahi, revealed these cuts in an internal email, stating that the company has experienced "more layers, more coordination, and structures that no longer serve us well at our current scale."

The restructuring aims to reduce management overhead, streamline operations, and shift spending to Uber's ride-sharing, delivery, and robotaxi units. This move involves a 20% reduction in the number of managers, with some employees now becoming individual contributors. Additionally, the company plans to decrease the number of small teams by 50% and cut positions more than seven layers down from the CEO.

Moreover, Uber is pushing for more in-person work, limiting remote work to just 1% of its workforce. This shift comes as tech companies across the industry are slashing jobs due to record spending on artificial intelligence (AI). As of late July, tech firms had cut around 140,000 positions, which accounted for more than a third of all U.S. layoffs so far this year. Key players like Amazon, Oracle, Meta, and Microsoft have led the layoffs, with their combined AI investments expected to surpass $800 billion this year.