Uber Technologies, Inc. (UBER.US) plans to lay off 3,300 employees to streamline management levels and optimize expenditure allocation.

Uber Technologies, Inc. (UBER.US) will cut approximately 3,300 jobs globally, representing 10% of its total workforce. This is part of a major reorganization aimed at reducing management layers and reallocating spending to ride-hailing, food delivery, and autonomous taxi (Robotaxi) businesses. CEO Dara Khosrowshahi stated in an email that recent growth at Uber Technologies, Inc. has led to more layers, more coordination, more dispersed responsibilities, and an organizational structure that may have made sense when certain businesses were smaller, but no longer serves the company well at our current scale. A spokesperson for Uber Technologies, Inc. indicated that the layoffs will reduce the number of managers by 20%, with some managers transitioning to individual contributor roles. However, the company did not disclose what proportion of managers will be laid off. The layoffs will also affect non-managerial employees. Khosrowshahi mentioned that to make Uber Technologies, Inc. simpler and faster, the company will reduce the number of teams with only one or two members by nearly half, while also decreasing the number of employees who are more than seven management levels away from the CEO. Additionally, the company will streamline its core engineering, science, and delivery teams, including merging three operational teams responsible for restaurants, retail, and its white-label delivery service. Furthermore, as part of an ongoing effort to encourage more employees to work in key office locations, Uber Technologies, Inc. mandates that only about 1% of employees can work remotely in the future. Khosrowshahi stated that these adjustments will provide savings that we plan to reinvest in growth, innovation, and the most critical capability building in the coming years. He noted that the company will further increase investments in drivers, delivery personnel, and merchants globally, while also upgrading its core business and advancing toward the future of autonomous driving. This action comes as Uber Technologies, Inc. commits to investing over $10 billion in Robotaxi partnerships over the next few years. The company aims to transform its services to make its platform the preferred choice for users calling for autonomous vehicles. Over the past year, Uber Technologies, Inc. has also reallocated capital in other ways, including reducing its stakes in certain companies and investing in Avride Inc., Lucid Group (LCID.US), Nuro Inc., and Rivian Automotive (RIVN.US). These layoffs follow targeted cuts earlier this year in the customer service and human resources departments. Large tech companies have frequently cited large-scale investments in artificial intelligence (AI) as a reason for layoffs in recent years, while Uber Technologies, Inc. has avoided significant layoffs since the COVID-19 pandemic. The company stated in May that it would slow down its hiring pace. The layoffs on Wednesday will reduce Uber Technologies, Inc.'s total workforce to just below 30,000, roughly returning to levels seen in 2021. Khosrowshahi did not mention the impact of artificial intelligence in the announcement, but these adjustments are also driven by the company's desire to leverage this technology more in daily operations. The layoffs will occur simultaneously in the U.S. and in other countries where the company operates.