Uber slashes 10% of global workforce

The ride-share service giant has commenced driver cuts to make room for robotaxis, which will see more than 3,000 workers out of jobs.

Uber is the latest multinational to make deep cuts to its workforce in response to the growing capability and availability of artificial intelligence.

As reported by Reuters, approximately 3,300 drivers will be made redundant in what is the biggest staff cut since the COVID-19 pandemic, which itself forced massive redundancies as demand plummeted.

Uber will also reduce staff seven or more reporting layers below the C-suite by 20 per cent, and limit fully remote roles to approximately one per cent.

While the move is likely connected to the connection between Uber and Waymo, the biggest US robotaxi operator which operates through the Uber app in several prominent cities, Uber CEO Dara Khosrowshahi told employees the cuts are to reduce complexity and management challenges, rather than AI itself.

She said: “A leaner organisation 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.”

Competition continues to impact driving and delivery services, as DoorDash and Instacart also put pressure on Uber subsidiary Uber Eats, and Tesla also doubled down on robotaxis.

Uber reportedly plans to invest more than $10 billion into robotaxis over the coming years.

The news follows that of global conglomerate Amazon’s 16,000-person workforce reduction, which was reportedly also to strengthen management and reduce bureaucracy.

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