Uber Technologies will cut about 3,300 jobs, representing roughly 10% of its global workforce, as part of a major restructuring aimed at reducing management layers and reallocating resources towards its core ride-hailing, delivery and robotaxi businesses. The job cuts will reduce the number of managers at the company, with some managers being moved into individual contributor roles, while the layoffs will also affect employees who are not managers.

Uber had about 34,000 employees globally at the end of last year, according to its annual report. The company seeks to cut layers and simplify teams, as stated "Over the last 5+ years, Uber has grown," he said.

"But that growth has also brought complexity: more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale." The restructuring is aimed at making the company "simpler and faster", Khosrowshahi said.

Number employees sitting seven more

The number of employees sitting seven or more layers below the CEO has been reduced as part of the overhaul. The company is also combining teams where it believes fragmentation has created duplication and slowed decision-making. Uber will merge its three Delivery Operations teams covering restaurants, retail and Direct into single teams at the global, regional and country levels.

Its Core Services Engineering and Science teams are also being combined, Bloomberg reported. Only around 1% of staff will remain remote, while the company will concentrate global teams in its largest global hubs in New York and San Francisco, and regional, local and technology teams will be based in designated hubs.

The company is asking the vast majority of remote employees to move to an office. Going forward, only around 1% of Uber's employees will be allowed to work remotely, while the company will continue to enforce its hybrid policy requiring staff to work from the office three days a week.

Khosrowshahi said the savings from the restructuring would be reinvested in growth, innovation and other capabilities. "Our opportunity from here is enormous: we have the chance to bring Uber to hundreds of millions more people; to invest even more in drivers, couriers and merchants; and to innovate across our core businesses and build the autonomous future," he said.

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The restructuring comes as Uber has pledged to commit more than $10 billion to robotaxi partnerships in the coming years. The company has also invested in Avride Inc., Lucid Group Inc., Nuro Inc. and Rivian Automotive Inc., while reallocating capital.

The latest layoffs follow more targeted job cuts Uber made this year in its customer service and human resources departments. Unlike several major technology companies, Uber had avoided large-scale workforce reductions since the Covid-19 pandemic. Uber shared in May that it would moderate the pace of hiring.

Wednesday's cuts will bring the company's total employee count to just under 30,000.

Khosrowshahi did not mention artificial intelligence as a reason for the restructuring in his announcement, though Bloomberg reported that the changes were also being driven The company's shares rose 2% following the announcement. The job cuts are part of a broader effort to simplify and streamline Uber's operations, with the goal of making the company "simpler and faster".

The restructuring is expected to have a significant impact on Uber's workforce, with some employees being laid off or having their roles changed.

The move is also seen as a strategic shift towards robotaxi partnerships and autonomous vehicles. Uber has pledged to commit more than $10 billion to robotaxi partnerships in the coming years, and the company has already invested in several startups in this space.

The latest layoffs are expected to have a limited impact on Uber's core ride-hailing business, which is expected to continue growing in the coming years.

The restructuring is also seen as a response to the changing nature of work and the rise of remote work. Uber has been criticized for its lack of transparency around remote work policies, but the company has confirmed plans to tighten its location and remote-work policies as part of the overhaul.

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Only around 1% of Uber's employees will be allowed to work remotely, while the company will concentrate global teams in its largest global hubs in New York and San Francisco.

The move is also seen as a way for Uber to reduce costs and improve efficiency. The company has been struggling with high operating costs, including those related to employee salaries and benefits.

The restructuring is expected to have a significant impact on Uber's workforce, with some employees being laid off or having their roles changed. The company has not yet confirmed which specific teams will be affected

Uber's CEO, Dara Khosrowshahi, said the restructuring was necessary to make the company "simpler and faster". "Our opportunity from here is enormous: we have the chance to bring Uber to hundreds of millions more people; to invest even more in drivers, couriers and merchants; and to innovate across our core businesses and build the autonomous future," he said.

The move is expected to have a significant impact on Uber's workforce and operations, but it also represents an opportunity for the company to refocus its efforts and become more competitive in the ride-hailing market.