Uber is undertaking a significant restructuring, cutting about 3,300 corporate jobs, which represents 10% of its global headcount. This move is aimed at flattening management layers and freeing up resources for increased investment in its core ride-sharing, delivery, and expanding robotaxi businesses. CEO Dara Khosrowshahi communicated these changes in an internal email, highlighting that the layoffs are intended to reduce complexity and improve efficiency within the company.
The restructuring will specifically reduce the number of managers by 20% and decrease teams with only one or two members by 50%. Additionally, employees more than seven layers down from the CEO are being let go. Uber is also consolidating its engineering, science, and delivery divisions, as well as its delivery operations across various sectors like restaurants and retail. The company will also significantly reduce remote work, with less than 1% of staff allowed to work remotely.
Despite being profitable and growing, with gross bookings rising 24% year-over-year to $58.0 billion and $2.8 billion in free cash flow in its second-quarter results, Uber is making these cuts to strategically reallocate funds. The savings from the layoffs are intended to be channeled into key growth areas, particularly autonomous vehicles and artificial intelligence. Uber has ambitious plans for robotaxis, including partnerships with Nvidia and Rivian for deployments starting in 2027 and 2028, and is facing increased competition from former partners like Waymo.
This round of layoffs follows earlier cuts in June to Uber's People and Places division. The company is also pursuing a major acquisition with a voluntary takeover offer for Delivery Hero at EUR 41.50 per share, valuing the company at $14.8 billion, aiming to expand its delivery presence globally. The company views these changes as necessary to move faster and maintain its competitive edge in a rapidly evolving market, especially as AI tools are increasingly integrated into its operations.
