Uber will lay off around 3,300 people, approximately 10% of its global headcount, as part of a restructuring intended to reduce management layers and redirect investment into its ridesharing, delivery, and robotaxi divisions. The company announced the changes in an internal email from CEO Dara Khosrowshahi, published online on Wednesday.
Management reductions and role changes
According to the internal message, the restructuring will reduce the number of managers by about 20%, and some employees currently in managerial roles will transition to individual contributor positions. Bloomberg first reported the layoffs.
The company also plans to cut the number of teams that consist of one or two members by 50%, and it will let go employees who are described as being "more than seven layers down from the CEO," according to the Bloomberg reporting.
Consolidation of engineering, science and delivery
Khosrowshahi wrote that Uber is combining its engineering, science, and delivery divisions to streamline work and clarify ownership. The company will also integrate delivery operations across its restaurants, retail, and direct businesses to reduce duplication and improve operational efficiency.
Remote work restrictions
Uber is dramatically tightening its remote-work policy, allowing fewer than 1% of employees to work remotely going forward. The change is intended to reduce coordination overhead and fragmented responsibility that the company says emerged as it scaled.
Rationale and expected outcomes
The CEO emphasized that while Uber has grown by launching new products and entering new businesses, that expansion has increased complexity—more layers, more coordination needs, and fragmented ownership—which in some cases no longer fits the company at its current scale. The reorganization aims to speed decision-making, clarify responsibilities, and concentrate resources on strategic areas.
Bloomberg was the first outlet to report the layoffs; Uber's internal email provided the detailed explanation and operational plans behind the reductions.
