Uber CEO Dara Khosrowshahi announced in an open message to employees on Wednesday that the company is laying off approximately 10% of its global workforce. The reduction involves roughly 3,300 to 3,400 positions, a move the company described as an effort to streamline operations and reduce organizational complexity.
The layoffs represent the largest workforce reduction for the San Francisco-based ride-hailing company since the 2020 COVID-19 pandemic. According to Uber's most recent annual report, the company employed approximately 34,000 people across more than 70 countries at the end of last year. Bloomberg reported that these cuts will bring the total headcount to below 30,000 employees.
Khosrowshahi stated that the company is removing organizational layers and reducing the number of small teams consisting of only one or two employees by 50%. The CEO noted that Uber currently spends too much time on internal coordination rather than business development. Wedbush Securities estimated that the workforce reduction would save the company approximately $1.7 billion.
In addition to the job cuts, Uber is implementing a new "location strategy" that restricts remote work. The company is requiring most remote employees to relocate to geographic areas near major office hubs, stating that only 1% of the workforce will be permitted to work fully remotely in the future. Uber will also continue to enforce a hybrid work policy requiring three days of in-person work per week.
The layoffs occur as Uber faces increased competition from delivery services like DoorDash and Instacart, as well as the expansion of autonomous "robotaxi" services. Waymo, owned by Alphabet, has expanded to 14 cities, while Amazon's Zoox recently began charging for rides in Las Vegas. Additionally, Uber and Lyft face potential labor shifts in California, where a budding union recently secured support from 30% of active drivers, a step that could lead to union certification in the state.
Investors reacted to the announcement by sending Uber shares up as much as 2.5% during Wednesday trading, reaching approximately $77 per share. The company stated that the reorganization is intended to accelerate decision-making and focus resources on autonomous driving innovation. Specific dates for when the 3,400 employees will officially depart were not reported, though the CEO's memo was published on Wednesday, September 2.