Uber has unveiled plans to reduce its global workforce by more than 3,000 positions, a move aimed at simplifying the company's organizational structure and focusing resources on its primary business operations. The layoffs represent roughly 10% of the company's total headcount, returning staffing levels to those observed in 2021.
In a communication to employees, CEO Dara Khosrowshahi explained that the company had grown too rapidly, resulting in excessive management layers and fragmented teams that hindered efficient decision-making. By consolidating smaller units into larger groups, the firm intends to become more agile. Khosrowshahi stated that these measures are designed to position the company for future growth, specifically noting investments in ride-hailing, delivery services, and autonomous vehicle partnerships.
The restructuring is expected to yield up to $2 billion in annual savings, according to analyst estimates. Following the announcement, Uber shares saw an increase of nearly 2%. While the company has not specified which geographic regions will face the most significant impact, it confirmed that the cuts affect both management and non-management roles.
Alongside these personnel changes, Uber is shifting its workplace policy, requiring nearly all staff to work from designated office hubs, with remote positions now limited to approximately 1% of the workforce. This restructuring marks a notable shift for the San Francisco-based company, which had largely avoided major layoffs since the pandemic era.
Source: BBC News
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