- Ride-hailing giant Uber will be laying off around 10 per cent of its staff as part of "significant organisational changes," CEO Dara Khosrowshahi said in a message to employees released on Wednesday.
- Khosrowshahi stated, "Today, we're making a number of significant organizational changes across Uber. As a result, we will be reducing the size of our team by about 10 percent."
- The company said the layoffs were aimed at making the platform "simpler and faster" and at reducing coordination delays in what has become a sprawling operation.
- On Wednesday, Uber said it was shutting down its business in Nigeria and Uganda, after leaving Tanzania earlier this year.
- Uber is asking the majority of its staff to come into an office, meaning less than about 1% of employees will be working remotely, reinforcing a hybrid work policy requiring three days a week in the office.
- Khosrowshahi said Uber had been growing in the past five years and the business was performing well, but that growth brought complexity: more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale.
- The changes are designed to make Uber simpler and faster and create more capacity to invest in our future, according to Khosrowshahi.
- Organisational changes include combining operational and tech teams, reducing micro-teams by nearly 50%, and cutting the number of employees who sit more than seven layers from the chief executive by 20%.
Uber is laying off about 10% of its workforce, approximately 3,300 jobs, as part of a major restructuring aimed at simplifying operations. CEO Dara Khosrowshahi stated that the changes are necessary to address the complexity that has arisen from the company's growth over the past five years.
In a message to employees, Khosrowshahi explained, “The changes we’re making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future.” The layoffs will help reduce layers of management and streamline decision-making processes, with the goal of creating a “leaner organization” that allows for clearer ownership and faster decisions.
Uber, which has around 34,000 employees globally, operates in over 70 countries. The company has also announced the closure of its business in Nigeria and Uganda, following its exit from Tanzania earlier this year. Khosrowshahi noted that the restructuring would involve merging operational and tech teams and reducing the number of “micro-teams” by nearly 50%.
Additionally, Uber is reinforcing a hybrid work policy, requiring most employees to work in the office three days a week, which will further reduce the number of remote workers to less than 1%. Khosrowshahi emphasized that while the company has been performing well, the growth has led to “more layers, more coordination, more fragmented ownership” that no longer serve the company’s needs at its current scale.56
“The layoffs are part of a broader restructuring that includes shutting down Uber's business in Nigeria and Uganda, after exiting Tanzania earlier this year. The company is also reinforcing a hybrid work policy requiring three days a week in the office, with less than 1% of employees working remotely.”
The Guardian
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