Uber is laying off more than 3,000 people worldwide as part of a massive restructuring intended to reduce managerial layers and refocus expenditure on its core business. The layoffs total almost 10% of its global workforce, returning staffing levels to those seen in 2021.
Dara Khosrowshahi, CEO of the taxi and delivery firm, said in an email to staff that the company’s rapid expansion created too many layers and small teams, which hampered decision-making.
He stated that the reductions will better position Uber, which has its worldwide headquarters in San Francisco, to capitalise on its “biggest opportunities ahead of us”. The move represents one of Uber’s most significant restructurings in years, indicating a shift toward a leaner operating model.
Following the release, shares gained about 2%, indicating that investors were pleased with the recommendations. Cutbacks affect both managers and non-managers, and Uber has stated that it intends to consolidate many of its smaller teams into larger groups; however, the company has not identified the areas most affected by employment cutbacks.
Khosrowshahi stated that such adjustments are designed to make Uber “simpler” and “faster,” while also freeing up funds to investment in areas critical to the company’s future success.
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