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

Uber, the global taxi and delivery service, announced on September 2 that it will be reducing its workforce by over 3,000 jobs as part of a significant restructuring effort. This move aims to trim management layers and refocus resources on the company's core business operations. The cuts represent approximately 10% of Uber's global workforce, bringing staffing levels back to 2021's figures.

CEO Dara Khosrowshahi explained that the company's rapid expansion had led to an accumulation of layers and small teams, which slowed decision-making processes. He emphasized that the restructuring would position Uber better for its future opportunities. The changes mark one of Uber's most substantial restructurings in recent years and signal a move towards a more streamlined operating model.

The announcement initially boosted Uber's shares by nearly 2%. The job cuts will affect both managers and non-managers across the company. Uber plans to consolidate many of its smallest teams into larger groups, though the specific locations being impacted remain undisclosed. The restructuring aims to make Uber "simpler," "faster," and more focused on areas crucial to its future growth.

This comes as Uber intensifies investments in autonomous vehicle partnerships and expands its ride-hailing, delivery, and robotaxi services. The company is also implementing a new office strategy, requiring nearly all employees to work in person at designated hubs, limiting remote work to about 1%. Analysts estimate that the layoffs could save Uber up to $2 billion annually.

Unlike many tech giants that have downsized amid heavy AI investments, Uber had not undergone major layoffs since the pandemic. The latest restructuring brings Uber's workforce to just under 30,000 employees, close to the level seen before its most recent expansion.