Uber Stock Rises 2 4 After Company Announces 3 300 Layoffs In Major Restructuring

Uber shares rose after the company announced major job cuts. Uber Technologies shares rose about 2.4% in Wednesday morning trading after reports that the company plans to cut around 3,300 jobs, or roughly 10% of its global workforce. The layoffs are part of a restructuring aimed at reducing management layers, cutting costs and making the company’s structure simpler.

The layoffs will mainly target management roles. Uber said the restructuring will reduce the number of managers at the company by about 20%. Some managers will be moved into individual contributor roles instead of being removed from the company, according to a company spokesperson cited by Bloomberg News.

Uber wants to remove layers that have built up as the company grew. CEO Dara Khosrowshahi said Uber’s growth has created more management layers, more coordination and less clear ownership of work. He said some company structures that worked when Uber was smaller no longer make sense at its current size, according to an email obtained by Bloomberg News.

The company is also cutting down on small teams. Uber plans to reduce by nearly half the number of “micro-teams” with only one or two direct reports. The company will also reduce the number of employees who are seven or more reporting layers below the CEO, Reuters reported.

Uber is combining several teams to make decisions faster. The company plans to streamline its core engineering, science and delivery groups. Uber will also combine its three operations teams focused on restaurants, retail and its white-label delivery service.

These will be Uber’s biggest job cuts since the pandemic. Uber had about 34,000 employees worldwide at the end of last year, according to its annual report. The company last made bigger cuts in May 2020, when it laid off about 6,700 workers, or nearly one-fourth of its workforce.

Uber is not blaming AI for the job cuts. Some other tech companies have linked layoffs to artificial intelligence. However, Uber CEO Dara Khosrowshahi said the restructuring is mainly about simplifying the company, reducing extra layers of management and cutting jobs focused mostly on coordination.

Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news. She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs. Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events. She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard. Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives. For her, both journalism and art are ways to understand the world and tell stories that matter.Read More