Uber to cut 10% of staff to simplify structure
Uber has announced plans to cut 10% of its workforce to reduce costs and decrease the number of management layers. This was reported by CNBC Top News.
Reducing management layers
Uber CEO Dara Khosrowshahi said in a letter to employees that the changes are intended to make the company “simpler and faster” and provide more opportunities to invest in future growth.
According to him, the company will nearly halve the number of small teams in which a manager has one or two direct reports. Uber also plans to reduce by 20% the number of employees who are seven levels away from the CEO.
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New work format
Uber will consolidate more teams and concentrate them in office hubs such as New York and San Francisco. At the same time, about 1% of the workforce will be able to continue working remotely.
Khosrowshahi noted that at its current scale, the company has outgrown some of its existing management structures. He did not link the planned cuts to artificial intelligence, although CNBC notes that AI has been behind a wave of recent layoffs in the technology sector. According to the executive, a more compact organization should ensure clearer allocation of responsibility, faster decision-making, and more time for development rather than coordinating work.
