Uber has announced a significant reduction in its global workforce, planning to eliminate approximately 10% of its employees, which translates to around 3,300 corporate positions as part of a comprehensive restructuring effort.
Dara Khosrowshahi, the CEO of the ride-hailing company based in the United States, communicated to employees that this restructuring aims to streamline operations and enhance efficiency by reducing management layers and consolidating teams. Additionally, the company intends to encourage a greater number of its workforce to return to the office.
In a communication to staff on Wednesday, Khosrowshahi indicated that the workforce reduction of about 10% is based on earlier reports from Bloomberg. While Uber’s headquarters is located in San Francisco, the company did not disclose the specific number of roles that would be impacted in its various offices, including those in London.
Employees who will be affected have already been informed, although the company noted that individual countries may have specific procedures to follow in this context.
In his message, Khosrowshahi acknowledged that while Uber has experienced significant growth over the past five years, this expansion has also introduced complexities within the organization. He pointed out that more layers of management, increased coordination needs, and fragmented ownership have emerged, complicating operations in ways that were not an issue when the company was smaller.
“The changes we are implementing today are aimed at achieving two primary objectives: simplifying and accelerating Uber’s operations, and enhancing our ability to invest in future opportunities,” he stated.
Moreover, Uber is requesting the majority of its employees to work from the office, leading to only about 1% of the workforce continuing to operate remotely. This initiative supports a hybrid work model that mandates in-office attendance for three days each week.
Khosrowshahi outlined several organizational adjustments, including the integration of operational and technology teams, as well as a nearly 50% reduction in the number of “micro-teams,” where one or two individuals report to a single manager. Furthermore, the number of employees positioned more than seven layers away from the CEO has been reduced by 20%.
“The choices we are making today are challenging, yet they are essential for establishing a more robust Uber in the future,” Khosrowshahi remarked.
In addition to these changes, Uber is gearing up to introduce self-driving taxis on UK roads for the first time, following a partnership with the robotaxi company Wayve and receiving approval from Transport for London last month.
Since its inception in San Francisco in 2010, Uber has experienced rapid growth and is currently valued at over $150 billion.
