Summary:
Uber plans to cut around 3,300 jobs, or 10% of its global workforce, in its largest layoff round since the COVID-19 pandemic. The restructuring aims to reduce management layers, simplify operations and free up resources for growth areas including robotaxis and AI. Uber is also tightening its remote-work policy as it faces rising competition in autonomous mobility and food delivery. The announcement initially lifted Uber shares as investors focused on potential cost savings and improved efficiency.
Uber Technologies is set to cut approximately 3,300 jobs, representing around 10% of its global workforce, in its largest round of layoffs since the COVID-19 pandemic. CEO Dara Khosrowshahi announced the restructuring in a message to employees on September 2, saying the move is aimed at making the company “simpler and faster” while creating greater capacity to invest in future growth.
Uber had around 34,000 employees globally across more than 70 countries at the end of 2025. The latest layoffs are expected to bring its total workforce below 30,000. The company plans to use the savings generated from the restructuring to reinvest in drivers, couriers, innovation, growth and autonomous vehicle capabilities.
Management Layers and Micro-Teams to Be Reduced
The restructuring will focus heavily on reducing organisational complexity. Uber plans to cut the number of employees positioned seven or more reporting layers below the CEO by 20%. It will also reduce the number of teams with only one or two direct reports, known as “micro-teams”, by nearly 50%.
The company said some teams will be combined and staffing will be concentrated around key operational hubs. The objective is to create clearer ownership, accelerate decision-making and reduce the amount of time employees spend coordinating across multiple management layers.
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Uber Tightens Remote Work Policy
Alongside the layoffs, Uber is significantly tightening its remote-work policy. Fully remote positions will be limited to around 1% of the workforce, while the company will continue its hybrid policy requiring employees to work from offices three days a week.
The company also plans to prioritise employee presence at its two major hubs in San Francisco and New York, with the “vast majority” of remote employees expected to return to offices. Regional and international hubs will continue to operate.
Growing Robotaxi Competition Drives Restructuring
The restructuring comes as Uber faces increasing competition from autonomous ride-hailing companies. Waymo, the largest US robotaxi operator, currently operates through Uber’s platform in Austin and Atlanta but has also been expanding into markets independently.
Tesla and other autonomous-driving companies are also increasing their focus on robotaxis, raising concerns that driverless vehicles could weaken Uber’s role as the intermediary connecting drivers and riders.
To strengthen its position, Uber plans to invest more than $10 billion in robotaxis over the coming years, including backing companies developing autonomous-driving technologies and positioning its platform as a marketplace for driverless rides.
Uber Also Faces Delivery Competition and Rising AI Costs
Uber Eats is facing pressure from DoorDash, Instacart and other local delivery platforms. To strengthen its delivery business and achieve greater scale, Uber is pursuing major transactions, including its $14.8 billion acquisition of Delivery Hero.
The company is also dealing with rising AI-related costs. Reports have indicated that employees used the company’s entire 2026 AI budget within just four months, highlighting the rapid increase in spending on artificial intelligence.
Why Uber Stock Surged After the Layoff Announcement
Uber shares rose nearly 2% following the announcement as investors appeared to view the restructuring as a move that could improve efficiency, reduce costs and free up capital for growth areas such as autonomous vehicles. The stock, however, remains under pressure, having declined around 7.7% year-to-date and underperformed the S&P 500 amid concerns over intensifying robotaxi competition.
Largest Layoffs Since 2020
The latest cuts are Uber’s biggest since the pandemic. In May 2020, the company eliminated 3,700 jobs, or around 14% of its workforce, as COVID-19 caused a sharp collapse in ride-hailing demand. Shortly afterward, Uber announced another 3,000 job cuts and the closure of 45 offices.
More recently, Uber eliminated 23% of its people division in June, although that unit represented less than 1% of total company headcount. The latest 3,300-job reduction therefore represents a much broader restructuring of the company.
