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🇺🇸 United States /Economy & Trade

Uber to Cut 10% of Workforce in Cost-Saving Drive

From CBS News · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • Uber said it will cut 10% of its global workforce, or about 3,400 jobs, as it removes management layers and simplifies team structures.
  • CEO Dara Khosrowshahi said the savings will support investment in drivers, couriers, merchants and innovation, including autonomous driving.
  • Uber also announced a location strategy requiring most remote employees to relocate, with about 1% of workers expected to remain fully remote.

Uber is cutting roughly 3,400 jobs and sharply limiting remote work as it tries to make the company leaner and easier to manage.

Chief Executive Dara Khosrowshahi announced the 10% reduction in an open message to employees published on the company’s website. Uber said it plans to remove organizational layers, simplify team structures and take other measures to improve efficiency.

“To do those things, we need to make deliberate choices about where we put our people, our time, and our capital,” Khosrowshahi wrote. The company said the cuts would allow it to invest more in drivers, couriers and merchants, while also supporting innovation such as autonomous driving. Wedbush Securities estimated the layoffs could save Uber about $1.7 billion.

To do those things, we need to make deliberate choices about where we put our people, our time, and our capital.

— Dara KhosrowshahiUber’s CEO explained the company’s rationale for reducing its workforce.

Uber is also introducing a new location strategy that will effectively require most remote employees to move to areas where they can work from an office. Khosrowshahi said “the benefits of sitting together, collaborating in person, and solving problems as a team are clearer than ever in our post-COVID world.” The company aims to concentrate teams in fewer key hubs and said only about 1% of employees will be allowed to work remotely in the future.

Founded in 2009 as a ride-sharing company, Uber has expanded into food and retail delivery. Its shares rose as much as 2.5% on Wednesday after the announcements.

The benefits of sitting together, collaborating in person, and solving problems as a team are clearer than ever in our post-COVID world.

— Dara KhosrowshahiKhosrowshahi justified Uber’s new policy emphasizing office-based work.
About this summary

Originally published by CBS News in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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