Dara Khosrowshahi-led Uber Technologies will lay off about 3,300 employees, or 10% of staff, in its largest cuts since the COVID-19 pandemic, with the aim of better navigating the rise of robotaxis encroaching on its ride-hailing business.
As per Khosrowshahi’s note to employees, the job cuts will flatten management layers, reducing organisational complexity that was built during a period of rapid growth but is now proving to be a hurdle to decision-making.
“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,” Khosrowshahi said.
Uber’s stock has underperformed the S&P 500 and rival Lyft so far in 2026, with a near 8% decline driven by worries about growing competition.
The growth of delivery platforms like DoorDash and Instacart has been putting pressure on Uber Eats, forcing the company to turn to deals such as its USD 14.8 billion Delivery Hero acquisition to build scale and compete better.
There are also reports about growing tension between Uber and American robotaxi giant Waymo, which runs its cars through Uber’s app in Austin and Atlanta.
While the reports have not been confirmed yet by credible sources, Waymo has also been expanding into new markets without Uber, while rivals like Tesla double down on the technology further.
These trends have created a cloud of uncertainty over Uber’s future prospects, as a growing fleet of driverless cars could possibly eliminate the ride-hailing giant’s lucrative role as the middleman between vehicles and riders.
Uber, realising the challenge, has decided to put more than USD 10 billion into robotaxis in the coming years. While it will back the companies developing autonomous-driving systems, the ride-hailing giant has set the long-term goal of positioning itself as a go-to marketplace for driverless rides.
Uber will reduce the number of employees positioned seven or more reporting layers below the CEO by 20%, apart from cutting the number of teams with only one or two direct reports by nearly half. Some other teams will be combined to ensure that much of the company’s staff presence remains concentrated around its key hubs.
The ride-hailing giant will also limit fully remote roles to about 1% of staff while maintaining its three-day office policy.
The layoffs are Uber’s largest since May 2020, when the COVID-driven demand collapse forced it to shed 6,700 jobs, or nearly a quarter of its staff.
Uber, by 2025-end, had about 34,000 employees globally, according to the ride-hailing giant’s annual report.