Ride-hailing giant Uber (UBER.US) has announced a reduction of 10% of its workforce within the customer service division. This move is positioned as part of a broader strategy to streamline operations and fully embrace artificial intelligence (AI) technologies. The company detailed the job cuts affecting its community operations team on Wednesday.

A company spokesperson stated via email that Uber is focused on "simplifying processes, enhancing collaboration among in-person teams, and deepening our investment in AI." The spokesperson also noted that team members who previously worked remotely are now required to relocate to central office hubs, aligning with the company's return-to-office policy.

Megha Yethatika, Vice President of Global Community Operations at Uber, addressed the department in an internal memo, stating, "Our organizational structure has become overly complex and siloed." She acknowledged that the department has "made progress" in adopting AI but added, "To fully realize the potential of this technology, we need a more efficient organization to support its deep integration. We cannot scale cutting-edge technology on top of fragmented processes."

In recent months, a growing number of companies, from financial services firm Block (XYZ.US) to cloud computing giant Oracle (ORCL.US), have cited AI as a significant factor in workforce reductions. Uber's announcement marks its first explicit link between job cuts and AI-driven efficiency gains. This represents the company's second round of restructuring to simplify its team organization in less than two months.

In June, following the appointment of a new president, Uber eliminated 23% of the roles in what it termed its "people department," a cut affecting less than 1% of its global workforce of approximately 34,000 employees. The specific size of the customer service team was not disclosed.

Back in May, Uber indicated it would slow its hiring pace due to the widespread internal adoption of AI. Despite this, the company's careers website currently lists over 500 open positions, including engineering roles required to support its autonomous taxi partnership project.