Uber trims 3,300 jobs; shares climb in premarket

Uber will eliminate about 3,300 positions, roughly 10% of its global staff, returning headcount from about 34,000 to just under 30,000. The company announced the reductions on Wednesday; shares rose about 2% in premarket trading after the news.

Chief Executive Dara Khosrowshahi outlined the plan in an internal email, saying rapid expansion left the company with “more layers, more coordination, more fragmented ownership” and structures that no longer fit its size. He said the changes are intended to make the organization “simpler and faster,” cutting management layers and reducing duplication across teams.

The cuts are the largest since May 2020, when the company eliminated about 6,700 roles. Company figures show a 20% reduction in employees seven or more reporting layers below the CEO and a nearly 50% cut in micro-teams with only one or two direct reports.

Organizational changes include consolidating parts of engineering, science and delivery and merging three operations teams that handle restaurants, retail and white-label delivery. Uber plans to concentrate global teams in New York and San Francisco and will require most remote employees to relocate; about 1% of the workforce may remain fully remote under the new policy.

Uber said the restructuring will generate savings that it intends to reinvest in growth, innovation and capabilities it considers most important in coming years. The company plans to increase investment in drivers, couriers and merchants and to upgrade its core platform while continuing work toward autonomous vehicles.

Uber has committed more than $10 billion for robotaxi partnerships and has shifted capital into the autonomous-vehicle ecosystem, taking stakes in companies such as Avride, Lucid, Nuro and Rivian and reducing holdings in other businesses. The company says these partnerships will allow it to participate in future driverless fleets without manufacturing vehicles itself.

The stock reaction was modestly positive against a broader decline this year; shares have fallen more than 9% year-to-date and have lagged the S&P 500. Analyst price targets range about $70 to $150, with a consensus rating at Strong Buy and current trading near $75.

Khosrowshahi did not link the layoffs directly to artificial intelligence. Uber is increasing its use of AI across operations, and the company says part of the restructuring aims to create a leaner organization better able to deploy technology efficiently. Savings from the reductions will be allocated to areas the company identifies as central to its competitive position.