Uber laying off ‘about 10%’ of workforce worldwide

Uber, the global ride-hailing company, announced plans to lay off around 10% of its workforce worldwide as part of significant organizational changes, CEO Dara Khosrowshahi stated on Wednesday. The company, which employs roughly 34,000 people across more than 70 countries, aims to make the platform simpler and faster, and reduce coordination delays in its sprawling operation.

Khosrowshahi explained that the reduction in staff was intended to provide clearer ownership, faster decision-making, and more time dedicated to building rather than coordinating. The company, founded in 2009, has revolutionized urban transportation by disrupting markets dominated by traditional taxi and private car companies, expanding into delivery services and courier services over short distances.

However, many Uber drivers are not classified as full-time employees, typically treated as independent contractors based on local laws. Uber has already announced the closure of its business in Nigeria, Uganda, and Tanzania. According to Wedbush Securities, the layoffs could save the company approximately US$1.75 billion, which will be invested in growth areas.

The restructuring focuses on creating a leaner organization with fewer managerial layers, aiming to move faster and invest in growth. Uber plans to consolidate restaurant, retail, and direct delivery units into teams at global, regional, and country levels, with key hubs established in New York and San Francisco. Currently, only around 1% of employees will be allowed to work remotely.