Uber Technologies is laying off approximately 3,300 employees, or around 10% of its workforce, as the company restructures its operations and positions itself for a future increasingly shaped by autonomous vehicles.
The move marks the company's largest workforce reduction since the Covid-19 pandemic and comes alongside plans to invest more than $10 billion in robotaxi technology and partnerships over the coming years.
According to reporting by Reuters, Chief Executive Officer Dara Khosrowshahi informed employees that the restructuring is designed to simplify decision-making, reduce management layers and improve organisational efficiency after years of rapid expansion.
The overhaul reflects a growing strategic challenge for Uber as autonomous vehicle operators expand their presence in key markets and begin to compete more directly with traditional ride-hailing services.
Management overhaul accompanies workforce reduction
Uber said the job cuts are part of a broader effort to streamline its corporate structure rather than a direct response to artificial intelligence adoption.
In a note to employees cited by Reuters, Khosrowshahi said a leaner organisation would create clearer ownership, accelerate decisions and free employees to focus more on building products rather than coordination.
Key elements of the restructuring include:
• 3,300 job cuts, representing roughly 10% of Uber's workforce
• A 20% reduction in employees positioned seven or more reporting layers below the CEO
• Nearly 50% fewer teams with only one or two direct reports
• Consolidation of selected business teams
• Greater concentration of staff around key company hubs
• Fully remote positions reduced to around 1% of employees
• Retention of Uber's existing three-day office attendance policy
Uber employed approximately 34,000 people globally at the end of 2025, according to its annual report.
Robotaxi competition reshapes Uber's strategy
The restructuring comes as autonomous vehicle technology increasingly influences the competitive landscape of urban transportation.
According to Reuters, investor concerns have intensified amid reports of growing tensions between Uber and Waymo, the autonomous vehicle company owned by Alphabet.
Waymo currently operates robotaxi services through Uber's platform in cities including Austin and Atlanta. However, the company has also expanded into additional markets independently, raising questions about Uber's long-term role in a driverless transport ecosystem.
At the same time, Tesla continues to pursue its own robotaxi ambitions, adding to competitive pressure across the sector.
To protect its market position, Uber plans to commit more than $10 billion towards autonomous vehicle initiatives. Reuters reported that the company intends to support developers of self-driving systems while strengthening its role as a marketplace connecting riders with autonomous fleets.
The strategy signals Uber's belief that even in a driverless future, customer acquisition, demand management and ride distribution could remain valuable assets.
Market pressures extend beyond ride-hailing
Uber is also facing mounting competition in food delivery.
Rivals including DoorDash, Instacart and several local delivery platforms have increased pressure on Uber Eats, prompting Uber to pursue large-scale acquisitions to strengthen its position.
The company recently agreed to acquire Delivery Hero's food delivery business in a deal valued at approximately $14.8 billion, according to Reuters.
These competitive challenges have weighed on investor sentiment. Reuters reported that Uber's shares have fallen nearly 8% this year, underperforming both the S&P 500 and rival Lyft.
However, investors appeared encouraged by the restructuring announcement, with Uber's stock rising nearly 2% following the news.