Uber has begun a major restructuring that will cut about 3,000 employees, or about 10% of its total workforce (the company had about 34,000 employees by the end of 2025). All affected employees have been notified of the decision.
Uber has begun a major restructuring that will cut about 3,000 employees, or about 10% of its total workforce (the company had about 34,000 employees by the end of 2025). All affected employees have been notified of the decision.
This is stated in an internal memo from Uber CEO Dara Khosrowshahi, Engadget reports .
Uber's CEO says the company's revenue has nearly tripled in the past five years, but that rapid growth has strained internal processes. Internal surveys have shown that employees are spending too much time coordinating across teams instead of developing products.
To make the company “simpler and faster,” Uber is eliminating unnecessary layers of management and consolidating duplicate teams. The freed-up funds are planned to be directed to the development of new technologies. In particular, the company recently announced its intention to invest $10 billion in a return to the development of autonomous vehicles (in 2020, Uber sold its previous drone division).
In addition to the layoffs, Uber is changing its approach to organizing work. The company's global teams will be concentrated primarily in New York and San Francisco, while separate technology and regional hubs will also remain.
The vast majority of employees who have been working remotely will be asked to move closer to the offices. In the future, only about 1% of the staff will work completely remotely.
The company will more strictly control the requirement to visit offices at least three days a week.
“The benefits of working together, collaborating face-to-face, and solving problems as a team in the same room have become even more apparent in our post-Covid world,” said Dara Khosrowshahi.
He emphasized that the company consciously decided to carry out one large-scale restructuring instead of a series of small changes to ensure stability and speed up decision-making for the future.
