Uber Technologies is set to lay off approximately 3,300 employees, marking its largest job reduction since the pandemic as it restructures to streamline operations and invest in autonomous vehicle technology.
Uber Technologies has announced plans to cut around 3,300 jobs, which accounts for roughly 10% of its global workforce. This decision represents the company’s most significant layoffs since the onset of the COVID-19 pandemic and comes as Uber seeks to simplify its management structure and prepare for intensifying competition from autonomous vehicles.
The layoffs were revealed on September 2, 2026, during a communication from Chief Executive Officer Dara Khosrowshahi to employees. Khosrowshahi noted that Uber had become increasingly complex after years of rapid expansion. The restructuring aims to eliminate unnecessary management layers, consolidate teams, and reduce organizational bureaucracy, according to reports from Reuters.
As of the end of 2025, Uber employed approximately 34,000 individuals worldwide. The impending job cuts will therefore affect about one-tenth of its workforce. The company last executed a larger workforce reduction in May 2020, when it eliminated around 6,700 jobs due to a significant drop in transportation demand driven by the pandemic.
Khosrowshahi emphasized that the restructuring is designed to enhance Uber’s efficiency and speed. “A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating. It will also generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years,” he stated in his message to employees.
As part of the restructuring, Uber plans to reduce the number of employees who are seven or more reporting layers below the CEO by 20%. The company will also nearly halve the number of teams with only one or two direct reports, consolidating some teams under fewer leaders.
In addition to the layoffs, Uber is revising its workplace policy. Fully remote positions will be limited to approximately 1% of the workforce, while the company will maintain its requirement for most employees to work from the office three days a week.
The restructuring aligns with Uber’s strategy to pivot towards autonomous vehicles, which are becoming increasingly integral to the company’s long-term vision. Waymo, the leading U.S. robotaxi operator, is already utilizing its vehicles through Uber’s platform in cities like Austin and Atlanta, while expanding its services into additional markets. Competing companies, including Tesla, are also developing their own autonomous driving networks, posing a challenge to Uber’s traditional business model that relies on human drivers.
In response to this evolving landscape, Uber plans to invest over $10 billion in robotaxi technology in the coming years. The company is backing various autonomous driving firms and is positioning its platform as a marketplace for driverless transportation.
This shift in focus could necessitate a different type of workforce. Adam Ballantyne, an analyst at Uber shareholder Cambiar Investors, noted, “As AV tech and relationships grow and expand, there is a different type of employee needed to scale that business than one built around human drivers and all the costs to serve entailed with that, including management layers.”
While the restructuring is not being framed as a consequence of artificial intelligence, Khosrowshahi did not attribute the job cuts to AI advancements, despite many tech companies reducing their headcounts while integrating AI tools to enhance productivity. Nevertheless, Uber is grappling with rising expenses related to AI, with reports indicating that employees had already exhausted the company’s entire AI budget for 2026 within the first four months of the year.
Uber’s restructuring also reflects the competitive pressures it faces in its delivery business. Uber Eats is contending with rivals such as DoorDash and Instacart, prompting the company to strengthen its market position through acquisitions, including a notable $14.8 billion deal for Delivery Hero.
Amid these challenges, Uber’s stock has underperformed compared to the broader S&P 500 and rival Lyft this year, experiencing a nearly 8% decline amid investor concerns regarding competition and the future of mobility. However, shares rose nearly 2% following the announcement of the restructuring.
The impending job cuts signify a pivotal moment for Uber as it endeavors to streamline its operations while reallocating resources toward autonomous transportation and technology-driven growth areas. For employees, this restructuring represents one of the most significant workforce reductions since the pandemic, while for the company, it is a strategic move to adapt to the evolving landscape of the mobility industry.
According to Reuters, the restructuring is part of Uber’s broader strategy to navigate the challenges posed by an increasingly competitive market and the rise of autonomous vehicles.