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"The changes we’re making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future," CEO Dara Khosrowshahi told employees.
Uber is reducing roughly 10% of its workforce as part of a wider reorganisation aimed at cutting down management layers, consolidating teams, and moving more employees into office-based roles.
In a note to staff, CEO Dara Khosrowshahi said employees affected by the reductions had already been notified, except in countries where consultation or other local procedures are required.
Khosrowshahi said the decision was not based on individual performance, but on the company’s structure and priorities following several years of rapid growth.
Uber’s revenue has nearly tripled over the past five years, according to the CEO, but that expansion has also created more layers of management, fragmented ownership, and slower decision-making across the business.
The company said it has reduced the number of employees sitting seven or more layers below the CEO by 20%, while cutting the number of “micro-teams”, which comprise of teams with one or two direct reports, by nearly half.
The reorganisation will also bring together delivery operations teams that currently support Uber’s Restaurants, Retail, and Direct businesses. Those businesses will move to single ownership structures at global, regional, and country levels.
Further, the brand is making similar changes in its technology organisation, where it plans to combine its Core Services Engineering and Science teams.
The company is also tightening its location strategy. Global teams will be concentrated in New York and San Francisco, while regional, local, and technology teams will be based in designated hubs. Most remote employees will be asked to relocate to an office, with Uber expecting only around 1% of employees to remain remote in future.
Uber will continue to require staff to work from the office three days a week under its hybrid policy.
Khosrowshahi said the savings generated by the changes would be reinvested in growth, innovation and areas including autonomous technology.
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