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

Uber plans to eliminate over 3,000 positions globally as part of a significant restructuring effort aimed at reducing management layers and concentrating spending on its core operations. This reduction represents around 10% of the company's worldwide workforce, returning staffing levels to those observed in 2021. CEO Dara Khosrowshahi conveyed the news to employees via email, explaining that the company's rapid expansion had led to an excessive number of layers and small teams that hindered decision-making.

He added that the layoffs would position Uber favorably for future opportunities. The move marks one of Uber's largest restructurings in recent years, indicating a transition towards a leaner operating model. The announcement sent Uber's shares up nearly 2%, with investors seemingly supportive of the proposals. The cuts encompass both managerial and non-managerial roles, and Uber intends to consolidate many of its smallest teams into larger units.

However, the company has not disclosed the specific locations impacted by these job reductions. The restructuring efforts aim to simplify and accelerate Uber's operations while freeing up funds to reinvest in areas deemed crucial to its future growth. This comes as Uber intensifies investments in autonomous vehicle partnerships and expands its ride-hailing, delivery, and robotaxi services.

Additionally, Uber is modifying its office strategy, requiring most employees to work in person at designated hubs and limiting remote positions to approximately 1%. Analysts estimate that the layoffs could result in annual savings of up to $2 billion. Unlike many large technology firms that have recently reduced staff amid substantial AI investments, Uber had refrained from significant layoffs since the onset of the pandemic.

With these changes, Uber's workforce is projected to decrease to just under 30,000 employees, roughly aligning with its size prior to the latest expansion phase.