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BackUber Announces 10% Workforce Reduction to Streamline Operations
Uber Announces 10% Workforce Reduction to Streamline Operations
Developing
CNBC World1 hour agoBusiness1 min read

Uber Announces 10% Workforce Reduction to Streamline Operations

Quick Look

  • Uber announced plans to cut 10% of its workforce to consolidate management layers and reduce costs, with CEO Dara Khosrowshahi stating the changes aim to simplify operations and increase investment capacity in areas like autonomous vehicles.
  • The company had around 34,000 employees at the end of 2025, and its shares rose nearly 2% in morning trading following the announcement.

AI-generated summary

Why It Matters

Uber has been under pressure to improve profitability and streamline operations amid competition in the ride-hailing and delivery sectors. The company has previously invested heavily in autonomous vehicle technology and is seeking to optimize its organizational structure to support long-term growth initiatives.

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Uber on Wednesday announced plans to slash 10% of its workforce in a move to consolidate management layers and trim costs.

"The changes we're making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future," CEO Dara Khosrowshahi wrote in an email to employees. That includes its previous plans to commit more than $10 billion to autonomous vehicles in the coming years.

The ride-hailing company's shares rose nearly 2% in morning trading.

Uber declined to comment on the number of jobs cut. The company had around 34,000 employees at the end of 2025, according to an annual filing.

Uber is the latest company to flatten management structures to speed up decision-making and improve efficiency. Tech giants like Google have made similar moves in recent years.

Khosrowshahi did not attribute the cuts to artificial intelligence, which has been responsible for a recent wave of tech layoffs.

The changes include cutting small teams consisting of one to two reports by nearly half and trimming employees seven steps away from the CEO by 20%. Khosrowshahi said Uber has outgrown many of these structures at its current size.

Uber is also combining more teams and concentrating more employees in hubs like New York and San Francisco. The company will allow about 1% to continue working remotely, Khosrowshahi said.

"A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating," he said.

What to Watch

AI outlook — possibilities, not facts

  • Uber will complete the majority of its workforce reduction within the next quarter

    Likely · Within weeks

  • Uber will increase investment in autonomous vehicle technology following the cost savings from workforce reduction

    Possible · Within months

Open Questions

  • Which specific departments or teams will be most affected by the layoffs?
  • What is the expected timeline for completing the workforce reduction?
  • How will the remaining 1% remote work allowance be implemented and monitored?

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This article was originally published by CNBC World.

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