Uber to Cut 3,300 Jobs in Management Overhaul
Uber Technologies is cutting about 3,300 roles, or 10% of its staff globally, in a restructuring aimed at reducing management layers and reallocating spending into its ride-sharing, delivery and robotaxi businesses. Carmen Reinicke has more on "Bloomberg Open Interest." (Source: Bloomberg)
Uber, the ride-sharing giant, is implementing a sweeping restructuring plan that will see the company eliminate approximately 3,300 positions, or roughly 10 percent of its global workforce. In a move aimed at streamlining operations, the company's CEO, Dara Khosrowshahi, announced the changes in an email to employees, citing the need to reduce management layers and reallocate spending as Uber has grown in recent years.
The cuts will result in a 20 percent reduction in managerial positions, with some managers being reassigned to individual contributor roles. The company plans to cut the number of micro-teams by about 50 percent and eliminate employees who are more than seven layers removed from the CEO. This restructuring effort also includes streamlining core engineering, science, and delivery groups, such as merging its restaurant, retail, and white-label delivery service operations teams.
Uber plans to reinvest the generated savings into growth, innovation, and capabilities crucial for the future, with a focus on enhancing driver, courier, and merchant experiences worldwide. Additionally, the company will mandate that only about 1 percent of its employees can work remotely, as part of a renewed in-person work policy.
This strategic shift comes as Uber commits over $10 billion to robotaxi partnerships and aims to become the leading platform for autonomous vehicles. The company has been reallocating capital in various ways, such as reducing stakes in certain companies and investing in startups like Avride, Lucid Group, Nuro, and Rivian Automotive.
The layoffs follow earlier cuts in customer service and human resources departments earlier in the year. Despite these recent moves, Uber's workforce remains relatively stable, with the company's headcount now at around 30,000 employees, similar to the 2021 level. While Uber has not explicitly mentioned the impact of AI in its announcement, the company's restructuring efforts are driven by a desire to leverage artificial intelligence to improve daily operations.
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