Uber to cut over 3,000 jobs in major global restructuring

Uber is reducing its global workforce by over 3,000 positions as part of a major restructuring effort. This move, aimed at streamlining management layers and refocusing spending on core business operations, accounts for approximately 10% of the company's worldwide staff. The reduction brings Uber's headcount back to levels last observed in 2021, following a period of rapid expansion.

CEO Dara Khosrowshahi explained in an internal email that the company had become too complex with numerous small teams that impeded decision-making. He emphasized that these cuts will position Uber favorably for future opportunities. The restructuring marks one of Uber's most significant job cuts in recent years, signaling a shift towards a leaner operating model.

The layoffs impact both managers and non-managers alike. Uber plans to consolidate numerous tiny teams into larger groups to simplify operations and accelerate decision-making. However, the company has not disclosed the specific locations most affected by these job reductions. Khosrowshahi highlighted that these changes are designed to make Uber more streamlined and efficient while freeing up resources to reinvest in areas crucial to its future growth.

He attributed the decision to increase investment in autonomous vehicle partnerships and expand Uber's ride-hailing, delivery, and robotaxi services.

Analysts estimate that the layoffs could generate up to $2 billion in annual savings. This move diverges from the trend seen in many tech firms, which have recently downsized amid heavy spending on artificial intelligence. Since the pandemic, Uber had refrained from major job cuts, but the latest changes bring its workforce down to around 30,000 employees, close to the number seen prior to its latest expansion phase.