Uber to cut 3,300 jobs in management overhaul

Uber, the ride-sharing company, is set to eliminate approximately 3,300 jobs, equivalent to 10% of its global workforce, as part of a strategic management overhaul. This restructuring move was announced by CEO Dara Khosrowshahi in an email, citing the need to reduce management layers, reallocate spending, and streamline operations within Uber's ride-sharing, delivery, and robotaxi businesses.

The cuts will result in a 20% reduction in managerial positions, with some employees transitioning to individual contributor roles. Uber aims to simplify its structure by cutting the number of small teams by half and reducing the number of employees nearly seven layers below the CEO. The company will also mandate a maximum of 1% remote work, focusing on in-person collaboration at key offices.

Despite initial losses, Uber's shares saw a 1.7% increase in premarket trading following the announcement. The company intends to reinvest the savings generated from these cuts into growth, innovation, and capabilities crucial for the future. Uber plans to invest more in drivers, couriers, and merchants worldwide, upgrade its core business, and work towards an autonomous future.

The company has already allocated over $10 billion to robotaxi partnerships to transform its service into the leading platform for autonomous vehicles. This restructuring follows previous targeted cuts across customer service and human resources departments earlier this year. Since the Covid-19 pandemic, Uber has avoided significant layoffs, moderating its hiring pace.

With these cuts, Uber's total employee count is now estimated to be around 30,000, similar to figures from 2021. While Khosrowshahi did not mention AI's impact in his announcement, the changes are also driven by a desire to leverage more artificial intelligence to streamline daily operations.