Uber Technologies is cutting about 3,300 jobs, or nearly 10% of its global workforce, in one of its biggest restructuring exercises since the pandemic. The company said the move will simplify its organisational structure and reduce management layers.
Uber Targets Management Layers
The restructuring will reduce Uber’s management workforce by around 20%. Some managers will shift into individual-contributor roles, while others will leave the company.
Uber CEO Dara Khosrowshahi said, “Rapid growth over the past five years created additional layers, coordination requirements and fragmented ownership. The company now wants a leaner structure that can make decisions faster. Uber will also nearly halve the number of teams with only one or two members.”
Uber also plans to reduce the number of employees positioned more than seven layers below the CEO. The company is combining several teams across its engineering, science and delivery operations. Its three delivery operations groups covering restaurants, retail and direct services will also be brought together.
Uber Shares React Positively
Despite the large-scale job cuts, Uber shares rose in premarket trading after the restructuring announcement. Investors appeared to view the move as an effort to improve efficiency and redirect spending towards future growth.
The latest cuts follow targeted reductions in Uber’s customer service and human resources teams earlier this year. They also mark the company’s largest workforce reduction since its pandemic-era layoffs in 2020
Uber expects these changes to reduce duplication and make responsibilities clearer. The company said the savings will support future investments in growth and innovation.
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