Uber Technologies announced Wednesday it will cut about 3,300 jobs, roughly 10% of its workforce, as part of a restructuring to remove management layers, consolidate teams and reduce costs.
Uber’s upcoming layoffs will be its largest since May 2020, when it eliminated about 6,700 jobs as pandemic restrictions drastically reduced demand for ride-hailing services.
Uber CEO Dara Khosrowshahi said the layoffs aim to reduce organizational complexity, adding that Uber would combine some teams and concentrate most of its staff in key hubs as part of the move.
Uber’s recent restructuring decreases employees with seven or more reporting levels below the CEO by 20% and nearly halves the number of “micro-teams,’ which consist of only one or two direct reports.
The company will centralize its global teams in New York and San Francisco, require most remote employees to relocate, limit fully remote positions to about 1% of staff, and maintain its three-day in-office policy.
The cuts follow a difficult year for Uber shares, which have fallen nearly 8% and underperformed the broader S&P 500, due to concerns that autonomous ride-hailing companies like Waymo could threaten Uber’s dominance in North America.
According to its annual report, the company had about 34,000 employees worldwide at the end of last year.
Uber shares rose 2% following the announcement.
By CEO NA Editorial Staff
