New Delhi — Uber Technologies plans to cut about 3,300 jobs, or roughly 10% of its global workforce, as the company seeks to streamline management and redirect spending toward its ride-hailing, delivery and robotaxi businesses, according to a report.
CEO Dara Khosrowshahi announced the restructuring in an internal email, saying years of rapid growth had created “more layers, more coordination, more fragmented ownership” and organizational structures that no longer fit the company’s current scale, Bloomberg News reported.
The cuts are expected to reduce the number of managers by nearly 20%, though non-managerial positions will also be affected. Some managers will transition into individual contributor roles.
Uber said the restructuring is designed to accelerate decision-making, reduce overlapping responsibilities and free up resources for investment in drivers, couriers, merchants and other growth areas.
The job reductions are expected to create savings that can be reinvested “in growth, innovation, and the capabilities that will matter most over the coming years,” according to the companywide email cited in the report.
“Everyone whose role has been affected has already been notified, except in countries where we will follow the required local process,” the email said.
Khosrowshahi said employees had increasingly felt that too much time was being spent on “aligning” rather than “building, shipping, or serving customers.”
The company is also reducing management layers by giving managers responsibility for larger teams, particularly by eliminating what it described as “micro-teams” with only one or two direct reports.
Uber said it has reduced by 20% the number of employees sitting more than seven organizational layers below the CEO and cut the number of micro-teams by nearly half.
The company is also reviewing where employees and teams are located, with the aim of concentrating more operations in a smaller number of major hubs.
As part of that effort, Uber is asking most remote employees to return to an office. The company expects only about 1% of its workforce to remain fully remote in the near future.
“We’ll also continue to reinforce compliance with our hybrid work policy, which requires three days a week in the office,” the email said. (Source: IANS)
