Uber is set to cut more than 3,000 jobs worldwide as part of a restructuring aimed at reducing management layers, streamlining operations and redirecting spending towards its core businesses.
The planned layoffs, which represent about 10% of the company’s global workforce, are expected to reduce Uber’s headcount to just below 30,000, according to the BBC.
The restructuring is among the company’s largest in recent years and follows a period of rapid expansion that Uber says has created a more complex organizational structure.
Uber CEO Dara Khosrowshahi said in an email to employees that the company had accumulated too many organizational layers and small teams, slowing decision-making and making the business less efficient.
He said the changes would create a simpler and faster organization while freeing up funds to invest in the company’s “biggest opportunities ahead of us”.
The job cuts will affect both managerial and non-managerial employees, while some smaller teams are expected to be merged into larger units.
Also Read: Uber shuts down operations in Nigeria after 12 years
Khosrowshahi said the restructuring would help Uber operate more efficiently and direct resources towards areas considered critical to its future growth.
The company is also increasing its focus on autonomous vehicle partnerships while continuing to expand its ride-hailing and delivery businesses and its emerging robotaxi operations.
As part of the restructuring, Uber is tightening its workplace policy, with almost all employees expected to work from designated offices. Remote positions are reportedly being limited to about 1% of the company’s workforce. Analysts cited by the BBC estimate that the restructuring could save Uber as much as $2 billion annually.
The workforce reduction comes shortly after Uber announced plans to end its services in Nigeria and Uganda as the company reassesses its operations and investment priorities across Africa.
Uber said its Nigerian operations would end on September 2, citing “evolving business priorities and investment focus across the continent”.
The decision represents another significant shift in Uber’s African operations as the global ride-hailing company seeks to concentrate its resources on markets and business areas it considers strategically important.
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