Uber Technologies Inc. has announced a 10% reduction in jobs within its customer service division as part of a broader strategy to streamline operations and increase reliance on artificial intelligence.
The layoffs, announced on Wednesday within the community operations team, aim to simplify processes, enhance in-person collaboration, and further adopt AI, according to an Uber spokesperson via email.
Employees working remotely for the team were also asked to move to a hub office, aligning with the company’s return-to-office policy. Megha Yethatika, Uber’s VP of global community operations, stated that the organization had become overly complex and siloed.
While some progress has been made in AI implementation, she emphasized that an effective organizational structure is necessary to maximize AI’s potential, warning against layering AI on fragmented processes.
Uber’s latest cuts represent the second reduction within two months to streamline teams, following a June layoff of 23% of its “people division,” affecting less than 1% of its 34,000 global employees.
Despite slowing hiring in May due to AI initiatives, Uber still lists over 500 open roles, including engineers for robotaxi collaborations.
Uber shares fell less than 2% following the announcement.
By CEO NA Editorial Staff
