Uber Initiates Major Restructuring, Cuts 3,300 Jobs
Ride-hailing behemoth, Uber, has declared a significant organizational overhaul. The company is laying off approximately 3,300 employees, which is roughly 10% of its global workforce. The restructuring aims at streamlining management layers and accelerating decision-making processes across the company.
The news was delivered by Uber’s CEO, Dara Khosrowshahi, through an internal email that was later published online. Khosrowshahi stated that the changes are intended to make Uber “simpler and faster”. The goal is to free up capital for future growth, especially in its ride-sharing, delivery, and rapidly growing robotaxi divisions.
The restructuring will result in a 20% reduction in the number of managers, a nearly 50% decrease in small teams of one or two reports, and the elimination of roles that are more than seven levels below the CEO.
Uber, which operates in over 70 countries, will also merge its engineering, science, and delivery divisions. The company will focus its employees in key hubs like New York and San Francisco, and limit remote work to a mere 1% of staff. Analysts at Wedbush Securities estimate that these cuts could save Uber approximately $1.75 billion. Uber plans to redirect these funds into high-growth segments. Interestingly, Khosrowshahi did not attribute the layoffs to the rise of artificial intelligence, a common cause of recent tech job cuts. Following the announcement, Uber shares saw a 2% rise in premarket trading.
Source: TechCrunch – Uber is laying off 10% of staff, or 3,300 people