Uber cuts 3,300 jobs to flatten management structure

Uber Technologies ↘ 0.28% is laying off approximately 3,300 employees, or roughly 10% of its global workforce, in what amounts to the ride-hailing giant's largest round of job cuts since May 2020. The restructuring, first reported by Bloomberg News on Wednesday, is aimed at flattening the company's management structure and redirecting savings toward its core ride-sharing, delivery, and autonomous vehicle businesses.bloomberg+1

Flattening the Hierarchy

CEO Dara Khosrowshahi outlined the changes in a companywide email, writing that years of rapid growth had introduced "more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale".qz+1

The restructuring will reduce the number of managers by 20%, with some shifted into individual contributor roles rather than let go. Uber is also cutting nearly half the number of so-called micro-teams — groups with just one or two members — and reducing by 20% the share of employees who sit more than seven organizational layers below the CEO. The company had about 34,000 employees globally at the end of last year, according to its annual report, meaning the cuts will bring headcount to just under 30,000.techcrunch+3

On the operational side, Uber is merging its restaurant, retail, and white-label delivery units into a single structure and consolidating its engineering, science, and delivery teams. Remote work is also being sharply curtailed, with only about 1% of employees permitted to work off-site going forward.investing+3

Reinvesting in Growth

Khosrowshahi said the savings would be channeled back into drivers, couriers, merchants, and the company's push into autonomous vehicles. According to Bloomberg, Uber has committed more than $10 billion toward autonomous vehicle partnerships and has invested in companies including Avride, Nuro, and Rivian Automotive ↗ 2.41%.qz+1

The announcement follows a series of smaller cuts earlier this year, including a 23% reduction in Uber's People and Places division covering human resources and facilities. Uber shares rose on the news Wednesday morning.koreaherald+2