Uber Restructures for Growth, Announces Layoffs of 3,300 Employees
Uber Technologies is set to eliminate approximately 3,300 jobs, which accounts for around 10% of its global workforce. This decision is part of a significant restructuring aimed at streamlining management layers and reallocating resources to its primary ride-hailing, delivery, and robotaxi operations. CEO Dara Khosrowshahi confirmed in an email to employees that the layoffs will reduce the number of managers by 20%.
An Uber spokesperson indicated that while some managers will transition to individual contributor roles, the layoffs will also impact non-managerial staff. At the end of last year, Uber employed about 34,000 people worldwide, according to its annual report.
Uber seeks to cut layers and simplify teams
Khosrowshahi noted that Uber’s rapid growth over the past five years has led to increased complexity within the organization. He stated that the company’s revenue has nearly tripled during this period, but this growth has resulted in more layers of management and fragmented ownership. The restructuring aims to create a simpler and faster organization by reducing roles focused on coordination and broadening managers’ responsibilities, especially in teams with few direct reports.
The number of employees positioned seven or more layers below the CEO has been cut by 20%, and the company has nearly halved the number of small teams, referred to as “micro-teams.” Uber is also merging teams to eliminate duplication and enhance decision-making efficiency. For instance, its three Delivery Operations teams will be consolidated into single teams at various levels, including global and regional.
Only around 1% of staff to remain remote
As part of the restructuring, Uber is tightening its remote work policies. The company plans to centralize global teams in its major hubs located in New York and San Francisco. Most remote employees will be required to work from an office, with only about 1% allowed to continue working remotely. Uber will enforce a hybrid policy, mandating staff to be in the office three days a week.
Khosrowshahi mentioned that the savings from this restructuring would be reinvested into growth and innovation. He emphasized the potential for Uber to expand its reach and invest further in drivers, couriers, and merchants.
Focus shifts towards robotaxis and AI
This restructuring coincides with Uber’s commitment to invest over $10 billion in robotaxi partnerships in the coming years. The company has also made investments in firms such as Avride Inc., Lucid Group Inc., Nuro Inc., and Rivian Automotive Inc., while reallocating capital by reducing stakes in other companies.
These layoffs follow earlier job cuts in Uber’s customer service and human resources departments this year. Unlike many other major tech firms, Uber had largely avoided significant workforce reductions since the onset of the Covid-19 pandemic. Following the announcement, Uber’s shares rose by 2%.
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