Uber is cutting 10% of its customer support staff due to the implementation of AI
Uber Technologies announced a 10% reduction in its customer and driver support workforce, for the first time directly linking the layoffs to efficiency gains driven by artificial intelligence.
In an internal memo, Megha Yetadkar, vice president of global operations, explained that the organizational structure had become too complex and fragmented, hindering the scaling of new technologies across disjointed processes. At the same time, the company required support staff to return to the office from remote work to strengthen in-person collaboration.
This is the company’s second round of layoffs in the past two months. In June, Uber laid off 23% of its HR department staff following a leadership change, and in May, it announced plans to slow the pace of hiring due to the automation of internal processes. Despite workforce optimization and the implementation of artificial intelligence, Uber continues to actively recruit new specialists and currently has over 500 open positions.
Source: Bloomberg.
Earlier, Uber decided to suspend most of its planned expansion into new food delivery markets in Europe, abandoning the ambitious plans it had announced just a few months ago.
Uber has filed a lawsuit against New York City authorities over a new law designed to protect drivers from termination.
