Uber plans 10% workforce cut to trim management layers

Uber, the ride-hailing giant, announced on Wednesday plans to lay off approximately 3,300 employees, making up roughly 10% of its global workforce. This restructuring move aims to streamline operations, eliminate management layers, and consolidate teams. The cuts come after a challenging year for Uber shares, which have declined nearly 8% and lagged behind the broader S&P 500 due to investor concerns about potential threats from autonomous ride-hailing companies like Waymo.

At the end of last year, Uber employed around 34,000 people worldwide. The layoffs mark Uber's largest workforce reduction since May 2020, when the company laid off about 6,700 workers, or nearly a quarter of its global staff, in response to the pandemic-induced decline in ride-hailing demand. Uber CEO Dara Khosrowshahi emphasized that the cuts would help reduce the company's organizational complexity, which had slowed decision-making and created redundant roles.

Unlike some tech leaders, Khosrowshahi did not attribute the layoffs to artificial intelligence. Additionally, Uber stated it would streamline its team structure by combining some units and focusing most employees around key hubs, such as New York and San Francisco. The company also plans to limit fully remote work to around 1% of its staff and maintain a three-day office policy.

As a result of the announcement, Uber's shares surged about 2% in premarket trading, with the news first reported by Bloomberg.