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 represents roughly 10% of the company's worldwide staff, bringing headcount back to levels last observed in 2021. In a company email, Uber CEO Dara Khosrowshahi explained that the firm had grown too quickly, accumulating excessive layers and small teams that hindered decision-making.

Khosrowshahi believes the cuts will position Uber more favorably for future opportunities. The restructuring marks one of Uber's largest in recent years and demonstrates the company's commitment to a leaner operating model. Shares of Uber increased nearly 2% following the announcement, suggesting investor approval. The cuts encompass both managerial and non-managerial roles, and Uber intends to consolidate numerous small teams into larger groups.

However, the company has yet to disclose which locations will be most heavily impacted. These changes aim to streamline Uber, making it "simpler" and "faster," while freeing up resources to reinvest in areas pivotal to its future, according to Khosrowshahi. The restructuring unfolds as Uber intensifies investments in autonomous vehicle partnerships and expands its ride-hailing, delivery, and robotaxi services.

Additionally, Uber is implementing a stricter office policy, requiring most employees to work in person at designated hubs, with remote work limited to about 1%. Analysts estimate the layoffs could result in up to $2 billion in annual savings. Unlike many other large tech firms that have downsized amid heavy AI spending, Uber had not undergone significant job cuts since the pandemic.

This latest change brings Uber's workforce back to around 30,000 employees, close to where it stood prior to its most recent expansion phase.