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- Uber is cutting 10% of its workforce in an effort to consolidate management layers and trim costs.
- CEO Dara Khosrowshahi said the decision will help make Uber “simpler and faster” and allow the company to invest in growth opportunities.
- Khosrowshahi did not attribute the cuts to AI, which has been responsible for a wave of recent tech layoffs.
Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks during an Uber product unveiling event in New York, US, on Wednesday, May 14, 2025. Yuki Iwamura | Bloomberg | Getty Images
Uber on Wednesday announced plans to slash 10% of its workforce in a move to consolidate management layers and trim costs.
“The changes we’re making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future,” CEO Dara Khosrowshahi wrote in an email to employees.
The ride-hailing company’s shares rose about 2% in premarket trading.
Uber is the latest company to flatten management structures to speed up decision-making and improve efficiency. Khosrowshahi did not attribute the cuts to artificial intelligence, which has been responsible for a recent wave of tech layoffs.
The changes include cutting small teams consisting of one to two reports by nearly half and trimming employees seven steps away from the CEO by 20%. Khosrowshahi said Uber has outgrown many of these structures at its current size.
Uber is also combining more teams and concentrating more teams in hubs like New York and San Francisco. The company will allow about 1% to continue working remotely, Khosrowshahi said.
“A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating,” he said.
