Uber announced a significant workforce reduction affecting roughly 10% of its corporate employees, amounting to approximately 3,300 job cuts. Chief Executive Dara Khosrowshahi communicated the changes to staff, framing the restructuring as necessary to create a more efficient organization capable of operating at greater speed. The company cited the need to address complexity that had accumulated during its recent growth phase, including excessive management layers, fragmented ownership structures, and organizational arrangements that no longer align with the company’s current scale.
The restructuring encompasses several operational modifications designed to flatten the organizational hierarchy and improve coordination. Uber plans to merge operational and technology teams while simultaneously reducing the prevalence of micro-teams, where minimal staff report to individual managers, by nearly 50%. Additionally, the company is decreasing the number of employees positioned more than seven layers away from the chief executive by 20%. These changes represent the largest workforce reduction since 2020, when the company laid off 6,700 employees during the pandemic-driven downturn in ride-hailing demand.
Alongside the job cuts, Uber is implementing modified work arrangements for its remaining staff. The company is requiring the vast majority of employees to work from office locations, with less than approximately 1% of the workforce maintaining remote status. This shift reinforces a hybrid work policy mandating three days per week of in-office presence. While affected employees have already been notified, the company noted that certain jurisdictions will follow their own local procedures for implementing the changes.
The restructuring occurs as Uber pursues several major strategic initiatives, including a planned $10 billion investment in autonomous vehicle development and a recent $14.8 billion acquisition of German delivery company Delivery Hero. The company is also preparing to launch self-driving taxi services on UK roads following approval from Transport for London and a partnership with robotaxi firm Wayve.
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