According to a company spokesperson, the job cuts will reduce the number of managers at Uber by 20%, with some managers being reassigned to individual contributor positions. The restructuring also seeks to address organizational complexity that has accumulated as the company has expanded, according to Investing.com.
In an email obtained by Bloomberg News, Uber Chief Executive Officer Dara Khosrowshahi said the company’s recent growth had resulted in “more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale.”
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The restructuring will nearly halve the number of teams consisting of only one or two members and reduce the number of employees positioned more than seven layers below the CEO.
The company is also streamlining its core engineering, science and delivery groups. This includes consolidating its three operations teams covering restaurants, retail and its white-label delivery service.
As part of the restructuring, Uber is introducing stricter remote work policies. Going forward, remote employees will account for approximately 1% of the company’s workforce.
Khosrowshahi said the restructuring will “generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years.”
The company plans to direct additional investment toward drivers, couriers and merchants, while also upgrading its core ride-sharing and delivery businesses and developing autonomous vehicles.
