Uber Technologies Inc. is eliminating around 3,300 positions, representing 10% of its global corporate workforce, in a significant restructuring effort to reduce management layers and streamline operations, according to a memo from CEO Dara Khosrowshahi obtained by Bloomberg News.
The ride-hailing giant's latest cuts focus primarily on management and coordination roles, with Khosrowshahi noting that the company's intense growth over the past five years, with revenue nearly tripling, has created unnecessary complexity. He wrote: "We have reduced roles primarily focused on coordination, and have clarified the remit of the coordination roles that remain."
Among the major changes are the integration of delivery operations groups in restaurants, retail, and direct services into single global, regional, and country-wide units. The firm has also reduced micro-groups, with one or two subordinates, by almost 50%, and the workforce sitting seven levels away from the CEO by 20%.
Moreover, Uber will demand most of its remote workers to shift back to office jobs, leaving less than 1% of corporate employees as fully remote ones in the future. The firm plans to follow a mandatory hybrid model requiring presence at the office three days per week, and these layoffs initiated Wednesday are part of its ongoing operational adjustments.