Uber to Reduce Workforce by 10%, Laying Off 3,300 Employees

Uber is set to lay off around 3,300 employees, accounting for approximately 10% of its global workforce, as part of a strategy to streamline management tiers and boost investments in its ride-sharing, delivery, and robotaxi divisions. This information was conveyed in an internal email from CEO Dara Khosrowshahi, which was made public on Wednesday.

The email highlighted that these job cuts are part of a restructuring plan aimed at decreasing management roles by 20%, with some individuals in these positions transitioning to become individual contributors moving forward.

Bloomberg was the first outlet to report on the layoffs.

The leader in ride-sharing is also reducing the size of teams comprising one or two members by 50%, along with releasing employees who are “more than seven layers down from the CEO,” according to Bloomberg. Khosrowshahi’s email noted that the company intends to integrate its engineering, science, and delivery departments. Furthermore, Uber will amalgamate its delivery operations across restaurant, retail, and direct service sectors.

Positions for remote work within the organization are also being cut, with Uber now allowing less than 1% of its workforce to continue working remotely.

“We’ve developed new products, explored new business areas, expanded our customer base, and supported more earners, growing into a significantly larger and more resilient company. However, this growth has introduced complexity: increased layers, heightened coordination, fragmented ownership, and structures that, while effective for a smaller organization, no longer operate efficiently at our current scale,” Khosrowshahi reportedly expressed in the email.