Shares rise 2% as analysts project up to $2 billion in annual savings
Uber announced the elimination of more than 3,000 positions on September 2, a reduction the ride-hailing and delivery company said amounts to roughly 10% of its global workforce. The cuts will bring staffing back to levels last seen in 2021, with a post-restructuring headcount of just under 30,000 people.
Chief Executive Dara Khosrowshahi told staff the reductions would put Uber, headquartered in San Francisco, in a better position for what he called the company’s “biggest opportunities ahead of us.” In a company email, Khosrowshahi said the firm had “accumulated too many layers and small teams that slowed decision-making.” The changes, he said, were intended to make the firm “simpler” and “faster” while freeing up money to reinvest.
Shares in Uber rose nearly 2% after the announcement. Analysts said the layoffs could generate up to $2 billion in annual savings.
The cuts affect both managers and non-managers. Uber said it plans to fold many of its smallest teams into larger groups. The firm has not confirmed which locations will be most affected.
Alongside the workforce reduction, Uber is tightening its office strategy. The company is asking nearly all employees to work in person at designated hubs and limiting remote roles to about 1% of positions.
The restructuring comes as Uber steps up investment in autonomous vehicle partnerships and expands its ride-hailing, delivery, and robotaxi operations. Unlike many large technology companies that have cut jobs amid heavy spending on artificial intelligence, Uber had avoided major reductions since the pandemic.