Uber Cuts 3,300 Jobs in Restructuring for Robotaxi Push

Restructuring Targets Management Layers

Uber Technologies announced it will cut 3,300 jobs, representing 10% of its global workforce, according to an email from CEO Dara Khosrowshahi obtained by Bloomberg News. The restructuring aims to reduce management layers and merge teams as the company focuses more capital on its ride-hailing, delivery, and autonomous-vehicle businesses.

The cuts include a 20% reduction in the number of managers and a 20% decrease in employees sitting seven or more layers below the CEO. Uber also plans to nearly halve its smallest one- or two-person teams. The company said its rapid growth left it with too many layers of management, duplicated responsibilities, and fragmented decision-making.

Consolidation and Location Strategy

As part of the reorganization, Uber is combining its delivery teams for restaurants, retail, and direct delivery under unified leadership. Its Core Services Engineering and Science teams will also be merged. The company intends to concentrate global teams in major hubs such as New York and San Francisco, with regional and local teams in designated hubs and technology employees in tech centers. Most remote workers will be asked to return to offices, leaving only about 1% of employees eligible to work remotely.

Khosrowshahi said the leaner structure should make Uber faster and clarify accountability while producing savings that can be reinvested in its future. The company plans to increase investment in its drivers, couriers, and merchants, improve its core businesses, and accelerate work toward an autonomous future.

Autonomous Vehicle Investment

The restructuring comes as Uber ramps up its autonomous-vehicle strategy. The company has pledged more than $10 billion for robotaxi partnerships and has backed autonomous-driving and vehicle companies including Avride, Lucid, Nuro, and Rivian. The job cuts follow more targeted reductions in customer service and human resources this year and represent Uber's largest workforce reduction since the Covid-19 pandemic.

According to Fortune, Khosrowshahi said the cuts were not due to an economic downturn, noting that Uber has grown by orders of magnitude in the past five years. He attributed the decision to the company becoming too big to manage, with the changes aimed at helping Uber run faster and smarter. Khosrowshahi also said the decision was informed by conversations with employees who indicated the company spent too much time coordinating instead of building, shipping, or serving customers.

Uber shares were up 1.61%, reaching $76.45 at closing time, according to Fortune. The company's previous largest reduction was during the pandemic, when it cut 14% of its workforce, amounting to 3,700 jobs.

Sources

• Uber slashes 3,300 jobs as it streamlines for robotaxi push: Report
• Uber is cutting 3,300 jobs despite double-digit growth as it makes room for its robotaxi future | Fortune