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Uber to Cut Roughly 10% of Global Workforce in Operational Overhaul

CEO Dara Khosrowshahi targets management layers, scales back remote work to 1%, and exits markets in Nigeria and Uganda.

By The Company Wire3 min read
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Uber — Uber to Cut Roughly 10% of Global Workforce in Operational Overhaul
Uber — Uber to Cut Roughly 10% of Global Workforce in Operational Overhaul. Photo: TechXplore.

Uber Technologies Inc. plans to reduce its global staff by approximately 10% as part of a broad corporate restructuring intended to streamline internal workflows and accelerate product development, Chief Executive Officer Dara Khosrowshahi announced in a memo to workers on Wednesday.

The ride-hailing and logistics firm currently maintains a global headcount of about 34,000 workers spanning more than 70 nations, according to a recent regulatory filing with the U.S. Securities and Exchange Commission. In his statement to staff, Khosrowshahi explained that the job cuts are aimed at making the company "simpler and faster" while mitigating coordination bottlenecks that have developed across its expanding operations. He noted that establishing a leaner organizational footprint will yield clearer operational ownership, quicker corporate decisions, and allow staff to spend less time on cross-departmental coordination.

Investment firm Wedbush Securities estimated that the workforce reductions will generate roughly $1.75 billion in cost savings, which Uber plans to reinvest in prospective growth initiatives. According to Wedbush, the strategic management adjustments are designed to eliminate redundant niche teams and limit the total number of corporate personnel positioned more than seven management layers away from the chief executive officer.

A central component of the internal reorganization centers on Uber's delivery division. Khosrowshahi specified that the company's retail partnerships, restaurant ordering, and direct delivery units will be consolidated into unified operational groups organized across country, regional, and global levels. Originally launched in 2009, Uber transformed municipal transportation by allowing vehicle owners to provide rides through a digital platform, before expanding into retail delivery, food ordering, and short-distance courier logistics.

The structural realignment will also enforce a significantly smaller office footprint and stricter workplace attendance policies. Going forward, the company intends to centralize corporate functions inside designated regional hubs, with global units located primarily in San Francisco and New York. Furthermore, Khosrowshahi stated in his note that only about 1% of the overall workforce will be permitted to work remotely on a permanent basis.

Alongside internal operational cuts, Uber is continuing to scale down its international geographic exposure, as first reported by TechXplore. The platform confirmed Wednesday that it is shutting down operations in both Nigeria and Uganda, expanding on its exit from Tanzania earlier in the year. These operational rollbacks occur as Uber continues to face driver compensation disputes globally, where the majority of its driver network operates as independent contractors rather than full-time staff.

Financial markets reacted positively to the announced efficiency measures and corporate reorganization. U.S.-listed shares of Uber rose more than 2.5% during midday trading following the release of the chief executive's employee announcement on Wednesday.

Sources

  1. TechXplore

Company: Uber

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The Company Wire

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