Uber is cutting 10% of its workforce in a bid to consolidate management layers and reduce expenses. Chief Executive Dara Khosrowshahi stated that this move will enable the company to become "leaner and faster" while allowing it to invest in growth opportunities. Notably, Khosrowshahi did not attribute the layoffs to artificial intelligence, which has been a driving factor behind the recent wave of tech industry job cuts.

Dara Khosrowshahi, CEO of Uber Technologies, spoke at the company's product launch event held in New York on Wednesday, May 14, 2025. The ride-hailing firm announced on Wednesday its intention to reduce its workforce by 10%, aiming to streamline management structures and cut costs. In an email to employees, Khosrowshahi wrote, "The changes we are making today are designed to accomplish two things: make Uber leaner and faster, and create more capacity to invest in our future." This includes the company's previously announced commitment to invest more than $10 billion in autonomous vehicles over the coming years.

Shares of the ride-hailing company rose nearly 2% in early trading. Uber declined to disclose the exact number of employees affected by the cuts. According to an annual filing, the company employed approximately 34,000 people as of the end of 2025.

Uber joins a growing list of companies that have flattened their organizational structures to accelerate decision-making and boost efficiency. In recent years, tech giants such as Google have undertaken similar initiatives. Khosrowshahi did not tie the layoffs to AI, which has been a key catalyst behind the recent spate of tech sector job reductions. The reforms include eliminating nearly half of all small teams consisting of one or two direct reports, as well as reducing by 20% the number of employees positioned within seven levels of the CEO.

Khosrowshahi indicated that at Uber's current scale, many of these structures have become redundant. The company is also consolidating more teams and centralizing more staff in hub cities such as New York and San Francisco. He noted that Uber will permit roughly 1% of its employees to continue working remotely. "A leaner organization will mean clearer accountability, faster decisions, and more time spent on building rather than coordinating," Khosrowshahi said.