Uber Cuts 10% of Workforce to Flatten Management and Trim Costs

Uber announced plans on Wednesday to eliminate 10% of its workforce in an effort to reduce operational expenses and consolidate corporate management tiers.

In an internal memo sent to employees and first reported by CNBC Business, Uber Chief Executive Officer Dara Khosrowshahi stated that the organizational changes are designed to streamline operations while unlocking capital for strategic growth areas.

"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," Khosrowshahi wrote in the email. That future focus includes the company's previously disclosed plan to direct more than $10 billion into autonomous vehicle initiatives over the coming years.

Uber declined to provide an exact count of the staff members affected by the layoffs. However, an annual regulatory filing showed the company employed approximately 34,000 workers at the end of 2025.

The restructuring places Uber among a growing list of major technology enterprises—including Google—that have taken steps to flatten management hierarchies, reduce bureaucracy, and accelerate decision-making processes.

Unlike several recent layoff announcements across the tech sector, Khosrowshahi did not link the corporate downsizing to artificial intelligence automation.

Instead, the executive outlined specific adjustments to the company's organizational chart. Uber is cutting small teams featuring just one or two direct reports by nearly 50%, while reducing staff positioned seven tiers below the CEO by 20%. Khosrowshahi explained that the company had outgrown many of these administrative structures as it scaled.

As part of the shift, Uber plans to merge additional teams and concentrate a larger share of its headcount within key corporate hubs such as San Francisco and New York. Moving forward, only about 1% of the company's workforce will be permitted to work on a fully remote basis.

Khosrowshahi expressed confidence that a leaner structure would improve day-to-day execution across the business. "A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating," he said.