Uber to cut 10% of jobs as AI, robotaxis challenge its future

Companies developing robotaxi services, including Waymo, are emerging as potential competitors
Uber
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Uber is embarking on one of its biggest organisational overhauls since the Covid pandemic, with the ride-hailing major planning to eliminate about 3,300 jobs globally. The move comes as the company seeks to simplify its management structure, cut costs and prepare for a rapidly changing mobility market.

The job cuts, equivalent to roughly 10 percent of Uber’s workforce, will be the company’s largest workforce reduction since 2020, when the pandemic forced it to eliminate around 6,700 positions as travel demand collapsed.

3,300 jobs on the chopping block

Uber had around 34,000 employees globally at the end of 2025, according to its annual report. The latest restructuring will:

  • Eliminate about 3,300 positions, or roughly 10 percent of its workforce.

  • Reduce the number of managers by around 20 percent.

  • Move some managers into individual contributor roles.

  • Affect both managerial and non-managerial employees.

  • Cover employees across the US and other countries where Uber operates.

Uber has not disclosed what proportion of managers will lose their jobs.

Why is Uber cutting jobs?

CEO Dara Khosrowshahi said the company had become more complex as it expanded, with additional management layers and overlapping responsibilities slowing decision-making.

According to an email from Khosrowshahi, Uber's growth had resulted in:

  • More management layers and coordination.

  • Fragmented ownership of responsibilities.

  • Small teams with only one or two members.

  • Employees positioned more than seven layers below the CEO.

The restructuring is aimed at making Uber a "simpler and faster" organisation, Khosrowshahi said.

Autonomous driving adds pressure

The restructuring comes at a challenging time for Uber. Investors are increasingly concerned about the impact of autonomous ride-hailing services on its core North American business.

Companies developing robotaxi services, including Waymo, are emerging as potential competitors in a market that Uber has traditionally dominated through its network of drivers.

Uber shares fell nearly 8 percent following news of the restructuring and have underperformed the broader S&P 500 this year.

Focus shifts to AI and autonomous mobility

While Khosrowshahi did not specifically cite artificial intelligence as a reason for the layoffs, the restructuring is also linked to Uber's efforts to use technology more extensively across its operations.

The company plans to redirect some of the savings towards:

  • Investments in drivers, couriers and merchants.

  • Improvements to its core ride-hailing and delivery businesses.

  • Technology and innovation.

  • Development of capabilities for an autonomous future.

Uber is also streamlining its engineering, science and delivery operations. Its three teams handling restaurants, retail and white-label delivery services will be combined as part of the overhaul.

Biggest workforce cut since Covid

Uber's latest restructuring marks a significant shift from the aggressive expansion that followed the pandemic recovery. The company is now prioritising a leaner organisation and greater operational efficiency as competition intensifies and autonomous technology reshapes the ride-hailing industry.

The company hopes the restructuring will generate savings that can be reinvested in growth, innovation and technologies it considers critical to its long-term future.

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