Uber Technologies has announced plans to cut 3,300 jobs, representing about 10% of its workforce, in the company’s largest round of layoffs since the COVID-19 pandemic.
Chief Executive Officer Dara Khosrowshahi announced the cuts in a memo to employees on Wednesday, saying the restructuring would reduce layers of management and simplify the company’s team structure.
The move comes as Uber increases its focus on artificial intelligence and autonomous vehicles while continuing to invest in its core ride-hailing, delivery and merchant businesses.
Khosrowshahi said a leaner organisation would allow the company to establish clearer responsibilities, make decisions faster and spend more time building products rather than coordinating between teams.
Uber targets management structure
As part of the restructuring, Uber plans to reduce by half the number of its so-called “micro-teams” — teams where managers have only one or two direct reports.
The company also plans to significantly reduce remote working.
Khosrowshahi told employees that, going forward, only about 1% of Uber’s workforce is expected to work remotely.
The restructuring represents a significant change for a company whose workforce expanded rapidly as its ride-hailing and delivery operations grew across global markets.
AI drives further job cuts
The latest layoffs follow another round of workforce reductions earlier this year.
Uber eliminated about 10% of its customer service positions in July as the company increased its use of artificial intelligence, according to Bloomberg.
The company had also announced a hiring slowdown in May, citing the growing role of AI in its operations.
The developments reflect a wider trend across the technology industry, where companies are restructuring their workforces as AI tools increasingly take over or automate certain administrative and customer-facing functions.
Uber, however, is not positioning the restructuring solely as a cost-cutting exercise.
The company says it intends to redirect resources towards drivers, couriers and merchants while building out its technology infrastructure for an increasingly autonomous transportation market.
Uber bets heavily on robotaxis
The restructuring comes as Uber attempts to establish a stronger position in the emerging robotaxi industry.
The company has said it plans to invest $10 billion in expanding its presence in autonomous transportation. Uber currently works with Waymo to offer driverless rides through its platform in cities including Atlanta and Austin.
But competition in the autonomous vehicle market is intensifying.
Waymo is expanding its driverless operations beyond its partnership with Uber, while Tesla is also moving deeper into the robotaxi business.
Tesla is expected to hold an event in Austin focused on its Cybercab robotaxi as the electric vehicle company seeks to strengthen its position in autonomous transportation.
For Uber, the shift presents both an opportunity and a strategic challenge.
The company could eventually benefit from a transportation model in which autonomous vehicles provide rides through its platform without the traditional costs associated with human drivers. But it must also compete for a position in an industry increasingly dominated by technology and automotive companies developing their own autonomous-driving systems.
Layoffs come despite revenue growth
Uber’s decision to cut jobs comes despite continued growth in its financial performance.
The company generated about $52 billion in revenue in 2025, representing an 18% increase from 2024.
Growth moderated in the second quarter of 2026, but revenue still increased 12% year-on-year to approximately $14.2 billion, according to the company’s latest earnings report.
The restructuring therefore appears to be driven less by an immediate collapse in revenue and more by Uber’s attempt to make its organisation more efficient as its business model evolves.
Uber’s shares have nevertheless struggled during 2026, falling about 8% for the year, although the stock was up more than 1.6% in Wednesday’s midday trading.
Wider technology industry cuts
Uber’s layoffs form part of a broader wave of workforce reductions across the technology sector.
According to Layoffs.fyi, more than 123,000 technology workers at nearly 290 companies had been laid off in 2026.
The growing adoption of AI has become a major factor behind restructuring decisions across the sector, with companies seeking to automate routine tasks, reduce operating costs and redirect employees towards higher-value functions.
For Uber, the latest cuts come at a particularly important point as it attempts to transform itself from a conventional ride-hailing platform into a broader technology company operating at the intersection of mobility, artificial intelligence and autonomous transportation.
