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Uber plans to eliminate more than 3,000 jobs worldwide as the ride-hailing and delivery company seeks to remove management layers, consolidate smaller teams and redirect spending toward its core operations.
The reductions represent roughly 10% of Uber’s global workforce and will return its headcount to levels last seen in 2021. The company will have just under 30,000 employees following the restructuring.
CEO Dara Khosrowshahi told employees that Uber’s rapid expansion had produced too many organizational layers and small teams, slowing down decision-making.
The cuts will affect managers and non-managers, although Uber has not disclosed which countries or locations will bear the brunt of the job losses.
Khosrowshahi said the overhaul would make the San Francisco-headquartered business “simpler” and “faster,” placing it in a stronger position to pursue its “biggest opportunities ahead of us.”
Investment shifts toward Uber’s core operations
Uber plans to combine many of its smaller teams into larger groups, with the resulting savings redirected toward areas it regards as central to its future.
The company is increasing investment in autonomous vehicle partnerships while continuing to expand its ride-hailing, delivery and robotaxi operations. Analysts have estimated that the layoffs could produce annual savings of up to $2 billion.
Investors appeared to respond positively to the announcement, with Uber’s shares rising nearly 2%.
The changes also extend to where employees work. Uber is asking nearly all staff to attend designated office hubs in person, while limiting remote positions to approximately 1% of roles.
Although widespread layoffs have swept through the technology sector in recent years, often alongside significant corporate investment in artificial intelligence, Uber had avoided another major round of reductions since the pandemic.
Expert warns against equating fewer managers with efficiency
The decision places Uber among several major employers that have sought to flatten their organizational structures by removing management layers.
But Oliver Shaw, CEO of workplace planning platform Orgvue, warned that reducing the number of managers does not automatically create a more effective business.
“Much has been spoken of players like Meta, Google, and most recently Uber removing management layers to 'boost efficiency'. But taking ‘lean’ for ‘effective’ can be a false economy.
“Managers translate strategy into execution, ensuring teams stay aligned, motivated, and productive.”
Shaw added: “The problem may not be too many managers - but a misalignment of roles. Often, departments like finance and HR don’t know which roles add value and which don’t.
“Without clarity on how strategy connects to structure and the work people do, businesses can make emotional, wholesale cuts rather than targeted, evidence-based decisions about where value is really being created."
