Uber to Cut 3,300 Jobs Worldwide

Global ride-sharing giant Uber has announced plans to cut around 10 percent of its global workforce, or approximately 3,300 employees. The major move is aimed at reducing excessive layers of management while increasing investment in its ride-sharing, delivery, and robotaxi businesses.

Uber CEO Dara Khosrowshahi announced the decision in an internal email sent to employees on Wednesday.

Management Restructuring and Scale of Layoffs

According to a report by Bloomberg, which first disclosed the information, the company is restructuring its overall administrative structure. As a result, the number of managers will be reduced by approximately 20 percent, with many of them being shifted to individual contributor roles.

In addition, the number of small teams consisting of only one or two members will be reduced by around 50 percent. Layoffs will also affect positions that are seven or more levels below the CEO.

Department Mergers and End of Remote Work

As part of the restructuring process, Uber is merging its engineering, science, and delivery divisions. At the same time, its restaurant, retail, and direct delivery services are being brought under a single umbrella.

The company is also making significant changes to its working arrangements, effectively ending the option of working from home or remotely. Going forward, fewer than 1 percent of employees will remain eligible for this arrangement.

Uber CEO’s Statement

In an email to employees, CEO Dara Khosrowshahi wrote, “We have launched new services, expanded the scope of our business, and become a much larger and stronger company than before. However, with this expansion, complexity within the organization has also increased—additional layers have been created and coordination has become more difficult. The administrative infrastructure that was appropriate on a smaller scale can no longer serve us effectively at our current size.”

//DBTech/BMT/OR//