Several major US companies are continuing to trim their workforces, with a combined total of 1,22,606 employees laid off across firms last year alone. Leading technology companies including Amazon, Dell, Meta, and Microsoft have been at the forefront of this trend, citing artificial intelligence and other factors behind the job cuts. In the latest development, prominent US ride-hailing company Uber Technologies has joined the same trend, announcing layoffs affecting 3,300 employees globally.
Uber confirmed that the layoffs amount to 10 percent of its current workforce and are being carried out as part of a broader restructuring process. The company said the decision involves eliminating layers within management and reviewing investments across its ride-sharing, delivery, and robotaxi businesses. Uber CEO Dara Khosrowshahi communicated the decision to employees via an email, with the company noting that affected staff were informed accordingly, except in countries where local regulations required a different process.
In his letter, Khosrowshahi explained that as Uber progressed along its growth trajectory in recent years, additional layers had been added for coordination purposes, which were no longer proving effective under current conditions. An Uber spokesperson said the restructuring aims to reduce the number of managers by 20 percent, with some being redeployed into individual contributor roles. However, the company has not yet disclosed the exact number of managers who will be laid off, and cuts are also expected to affect employees outside managerial positions.
Uber further stated that it has effectively ended its remote work policy, with only 1 percent of employees to be permitted to work remotely going forward, while the rest will be required to return to office. Khosrowshahi also confirmed that the company would reduce by 20 percent the number of employees positioned more than seven layers below the CEO, and cut by nearly 50 percent the number of “microteams” consisting of just one or two people.
With this latest round of cuts, Uber’s total employee strength will be limited to around 30,000 — a figure the company last held in 2021. While Uber has not officially cited artificial intelligence as a reason for the layoffs, industry observers believe the decision is aimed at increasing the use of AI across the company’s operations.