Uber to cut about 3,300 jobs, around 10% of its workforce

In short: Uber is cutting about 3,300 jobs, roughly 10% of its workforce, as it reshapes its organization and prepares for competition from robotaxis.

What happened

Uber is laying off about 3,300 employees, according to reporting cited by Reuters. That is about 10% of the company’s workforce, which was reported at roughly 34,000 people. Reuters described it as Uber’s largest layoff since the COVID-19 pandemic.

CEO Dara Khosrowshahi said the company wants a “leaner organization.” In simple terms, Uber is trying to remove extra layers of management so decisions can be made faster. Think of it like removing middle steps in a long chain of approvals, so fewer people have to pass a message along before something gets done.

The company said the cuts are meant to reduce organizational complexity that built up during a period of rapid growth. Internal messaging reported by Bloomberg and echoed by Reuters also pointed to “clearer ownership” and “faster decisions,” meaning it should be more obvious who is responsible for what.

Why it matters

Reuters said Uber is also trying to position itself for the rise of robotaxis, which are cars that can drive themselves and offer rides without a human driver (like a taxi with no one in the front seat). If robotaxis become more common, they could change the ride-hailing market and put pressure on Uber’s business. This round of layoffs is described as a structural rework, not just a routine effort to save money.

Source: NYTimes