Uber is implementing a layoff of approximately 3,300 employees, representing about 10% of its global workforce. This decision is part of a strategic plan to simplify the company’s structure and intensify investments in essential areas, such as app-based transportation, delivery services and autonomous vehicles. The changes were communicated via an internal email from CEO Dara Khosrowshahi, which was publicly released.
The CEO’s statement details that the layoffs are an integral part of a broad reorganization, with the objective of reducing the number of managers by 20%. According to the new guideline, certain employees who worked in management positions will be reallocated to individual contribution roles within the company.
The technology company is promoting a 50% reduction in teams made up of one or two members. In addition, employees positioned more than seven hierarchical levels below the executive director were terminated. Khosrowshahi’s email also reported on the merger of the engineering, science and delivery divisions, and the unification of restaurant delivery, retail and direct sales operations.
Uber’s remote work policy will also undergo significant changes. From now on, the company will allow less than 1% of its team to work completely remotely.
In his communication, Khosrowshahi explained the reasons for the restructuring. “We created new products, expanded into new businesses, reached more consumers and supported more people who generate income, making us a much bigger and stronger company. But this growth also brought complexity: more hierarchical levels, more coordination, more fragmented ownership and, in some cases, structures that made sense when companies were smaller, but that no longer serve us well at our current scale”, said the executive.
