Uber to cut nearly 10 pc of workforce to focus on core business

New Delhi, Sep 2 (AHN) Uber Technologies reportedly plans to cut roughly 3,300 roles or about 10 per cent of its global workforce, as Chief Executive Officer Dara Khosrowshahi moves to cut management layers and redirect spending toward its ride‑hailing, delivery and robotaxi businesses.

Khosrowshahi announced the changes in an email, saying rapid growth in recent years had created “more layers, more coordination, more fragmented ownership” and structures that no longer served the company at its current scale, according to a report from Bloomberg News.

The reductions will slash the number of managers by nearly 20 per cent, but also affect non‑managerial roles. Some managers will be moved into individual contributor positions, the report said.

The cuts are intended to speed up decision‑making, reduce duplication and free up capital to reinvest in drivers, couriers and merchants.

The reduction in employees will generate savings for reinvestment “in growth, innovation, and the capabilities that will matter most over the coming years," the companywide email reportedly said.

“Everyone whose role has been affected has already been notified, except in countries where we will follow the required local process,” the email said.

CEO said that employees started feeling that too much time is spent on “aligning” rather than “building, shipping, or serving customers.”

The number of management layers were reduced “by broadening manager scopes,” particularly in “micro-teams” of only 1-2 reports.

Uber “reduced the number of employees who sit over 7 layers from the CEO by 20 per cent and the number of micro-teams by nearly 50 per cent,” the statement said.

The company is also restructuring “where roles and teams should be based, with the goal of concentrating teams in a smaller number of key hubs.”

The firm also asked majority of remote employees to move to an office, adding that only 1 per cent of employees will be remote in 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.

—AHN

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