Company eliminates approximately 10% of its workforce as it restructures operations and prepares for the rise of robotaxis
Uber has announced one of the largest restructuring efforts in its recent history.
The company will eliminate approximately 3,300 jobs, representing about 10% of its workforce, in its biggest round of layoffs since the COVID-19 pandemic.
Uber had approximately 34,000 employees before the job cuts were announced.
Company aims to reduce management layers
According to Uber CEO Dara Khosrowshahi, the restructuring is designed to simplify the company’s organization and speed up decision-making.
The company expanded rapidly in recent years and accumulated multiple layers of management.
As part of the changes, Uber plans to reduce by about 20% the number of employees who are seven or more levels below the CEO within its corporate structure.
The company also plans to limit fully remote positions to approximately 1% of its workforce.
Robotaxis are transforming the transportation industry
The restructuring comes as the ride-hailing industry prepares for a major shift: the expansion of autonomous vehicles.
Technology companies and automakers are investing billions of dollars in developing robotaxis, which could directly transform the business model of companies such as Uber.
Uber itself has been forming partnerships with autonomous vehicle companies to integrate the technology into its platform.
Largest round of layoffs since the pandemic
The latest round represents Uber’s largest workforce reduction since the pandemic.
The company says the organizational structure created during years of rapid expansion has made decision-making more difficult and increased internal complexity.
The cuts are part of a broader restructuring as Uber works to maintain its position in the ride-hailing market while adapting to the arrival of autonomous vehicles.
Source: Reuters
