Uber is firing 10% of its global workforce
What's the story
Uber has announced a massive restructuring plan that will see around 3,300 jobs, or 10% of its global workforce, being cut. The move is aimed at simplifying organizational structure and reallocating resources toward its core businesses like ride-sharing. CEO Dara Khosrowshahi said in an internal email that the company's recent growth has led to "more layers, more coordination," and structures that may have worked when the business was smaller no longer serve it well at its current scale.
Strategy
Plan to cut number of managers by 20%
The restructuring plan will cut the number of managers by 20%, with some being shifted to individual contributor roles.
The company also plans to cut nearly half the number of teams with only one or two members and reduce employees sitting more than seven levels below the CEO.
This is part of an effort to make Uber "simpler and faster."
Team mergers
Merging operations teams for restaurants, retail, and white-label delivery service
The restructuring plan also includes streamlining core engineering, science, and delivery groups.
This includes merging three operations teams for restaurants, retail, and a white-label delivery service.
The company is also mandating that only about 1% of employees can work remotely in the future as part of an ongoing push to have more staff work in-person at key office locations.
Future
Layoffs follow cuts in customer service, human resources
Khosrowshahi said the changes will "generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years."
He added that more investments would be made in drivers, couriers, and merchants globally.
The layoffs come after targeted cuts made by Uber this year across its customer service and human resources departments.
Growth impact
Job cuts being implemented across US and other countries
The restructuring comes after a period of rapid growth for Uber, with its top line nearly tripling over the last five years.
However, Khosrowshahi said this growth has also brought complexity, and the company now has an "enormous" opportunity to bring its services to more people and invest in drivers, couriers, and merchants.
The job cuts are being implemented across the US and other countries where Uber operates.