Uber to cut 3,300 jobs in company overhaul to reduce management layers

Uber, the ride-sharing giant, is implementing a massive restructuring plan to cut costs and improve efficiency. CEO Dara Khosrowshahi announced that the company will be eliminating about 3,300 positions, accounting for 10% of its global workforce. Khosrowshahi explained that the company's rapid growth in recent years has resulted in an excessive number of management layers, which have become less effective at the current scale.

The restructuring aims to reduce management by 20%, potentially laying off some managers and moving them to individual contributor roles. Uber also plans to streamline its workforce by reducing the number of small teams (with only one or two members) and individuals who are more than seven layers away from the CEO. Additionally, the company intends to mandate that only about 1% of employees can work remotely, as part of its push to encourage in-person work at key locations.

The restructuring will also see the consolidation of Uber's operations teams for restaurants, retail, and its white-label delivery service. As part of the company's ongoing push to invest in driver, courier, and merchant capabilities worldwide, Uber is allocating capital towards these areas. The layoffs follow smaller cuts in customer service and human resources departments across the company.

This move comes as Uber commits to spending over $10 billion on robotaxi partnerships and other growth, innovation, and autonomous future investments. While Uber has avoided massive layoffs since the Covid-19 pandemic, the company has taken targeted measures to adjust its workforce in line with its evolving business priorities.