4 hrs ago
Uber Cuts 3,300 Jobs in Overhaul Focused on Robotaxis
Uber is planning to remove about 3,300 jobs around the world.
That is about one out of every ten jobs at the company.
Uber says its business is performing well and that its revenue has almost tripled in five years.
However, the company became more complicated, with too many management layers and teams coordinating with one another.
Uber wants fewer layers so decisions can happen faster.
Some delivery, engineering and science teams will be combined.
Most employees who work fully remotely will be asked to work from an office instead.
The money saved will help Uber invest in its main services and new technology.
Uber is also spending more on partnerships for robotaxis, or self-driving taxis.
Uber Technologies plans to eliminate about 3,300 jobs globally, roughly 10% of its workforce.
CEO Dara Khosrowshahi said the cuts reflect organizational complexity after revenue nearly tripled over five years, not weak business performance.
Uber is reducing management layers, cutting micro-teams nearly in half and combining delivery, engineering and science teams.
Most remote employees will be asked to move to offices, with about 1% of employees remaining remote and hybrid staff working onsite three days weekly.
Uber plans to reinvest savings in core businesses, drivers, couriers, merchants, innovation and autonomous-vehicle partnerships worth more than $10 billion.
- Who
- Uber Technologies, led by CEO Dara Khosrowshahi, and about 3,300 affected employees.
- What
- A global workforce reduction and organizational restructuring involving layoffs, team consolidations and stricter office-work requirements.
- Where
- Globally, including the United States and other countries where Uber operates; teams will be concentrated in hubs including New York and San Francisco.
- When
- The articles do not specify the announcement date; affected employees had been notified except where local employment procedures apply.
- Why
- Khosrowshahi said rapid growth created excessive management layers, coordination and fragmented ownership, while the savings will support growth, innovation and autonomous vehicles.
Key facts
- Planned job cuts
- About 3,300 roles globally
- Estimated workforce impact
- Roughly 10% of Uber’s employees
- Expected headcount
- Just under 30,000 employees, approximately the company’s 2021 level
- Organizational changes
- Employees seven or more layers below the CEO were reduced by 20%, and micro-teams by nearly 50%
- Delivery consolidation
- Restaurants, Retail and Direct delivery operations will be combined at global, regional and country levels
- Remote-work policy
- About 1% of employees are expected to remain remote; hybrid employees must work from an office three days weekly
- Robotaxi investment
- More than $10 billion planned for autonomous-vehicle partnerships over the coming years
- Share-price reaction
- Uber shares rose as much as 1.7% in premarket trading after the announcement
Quotes
Dara Khosrowshahi
Chief Executive Officer of Uber Technologies
“Today, we’re making a number of significant organizational changes across Uber. We are removing layers, simplifying team structures, refining our global location strategy, and focusing our people and investments against the biggest opportunities ahead of us.”
livemint.com
“We have tremendous momentum, significant financial capacity, and opportunities in front of us that are larger than at any point since I joined the company.”
livemint.com
Sources
Uber to cut 3,300 jobs, strip out management layers as it shifts resources to robotaxis
Uber layoffs: Read complete mail CEO Dara Khosrowshahi sent as company cuts jobs
Uber to cut nearly 10 pc of workforce to focus on core business
Uber to Cut 3,300 Jobs Globally in Company Overhaul to Reduce Management Layers
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