Uber lays off 10% of customer service staff to simplify operations and scale AI

Uber Technologies has cut 10% of roles within its customer service operations as the company restructures its workforce to simplify processes, strengthen in-person collaboration and expand the use of artificial intelligence.

The cuts affect Uber's community operations team, which oversees customer support functions. Alongside the layoffs, the company has also asked remote employees within the division to relocate to hub offices in line with its return-to-office policy, according to a company spokesperson.

The move marks the first time Uber has explicitly linked workforce reductions to its AI strategy, reflecting how technology companies are increasingly reshaping organisational structures as artificial intelligence becomes more deeply embedded in business operations.

AI adoption drives organisational restructuring

Uber said the workforce changes are intended to create a leaner operating model that can better support AI adoption.

A company spokesperson said the organisation is working "to simplify operations, strengthen in-person collaboration, and continue to embrace AI."

In an internal memo, Megha Yethatika, Vice President of Global Community Operations, said organisational complexity had become a barrier to scaling new technologies.

"Our organization has become too complex and siloed," Yethatika wrote.

She added that while the department had already made progress in using AI, further transformation would require structural changes.

"We cannot scale frontier technology on top of fragmented processes."

Remote employees asked to relocate

As part of the restructuring, Uber has instructed employees who were working remotely within the community operations team to relocate to one of the company's hub offices.

According to the company, the requirement aligns with Uber's existing return-to-office policy and is intended to improve collaboration across teams.

Uber did not disclose how many employees work within its customer service organisation, making it unclear how many roles were eliminated.

Latest move in a broader restructuring effort

The customer service layoffs represent Uber's second organisational restructuring in less than two months.

Earlier this year, the company reduced 23% of its People division, affecting fewer than 1% of its global workforce of approximately 34,000 employees, following a leadership change within the HR organisation.

The latest cuts continue Uber's effort to simplify reporting structures while adapting its workforce to support AI-enabled operations.

Key developments include:

• 10% of jobs cut within Uber's customer service operations.
• Remote employees in the affected division asked to relocate to hub offices.
• Company cites operational simplification, stronger in-person collaboration and AI adoption as drivers of the restructuring.
• Marks the first time Uber has directly linked layoffs to AI efficiency initiatives.
• Represents the second restructuring round in under two months.

AI reshapes workforce planning

Uber's announcement comes as more technology companies connect workforce decisions to artificial intelligence.

According to the report, companies including Block and Oracle have also cited AI-related efficiencies when announcing recent job reductions.

Uber had already indicated earlier this year that growing internal use of AI would influence hiring plans. In May, the company said it would slow recruitment because of AI adoption.

At the same time, Uber continues to recruit for more than 500 open roles, including engineering positions supporting its robotaxi partnerships, signalling that hiring priorities are shifting rather than stopping altogether.

Balancing efficiency with future growth

The latest restructuring highlights how AI adoption is increasingly shaping workforce strategies beyond engineering teams. Rather than focusing solely on technology deployment, companies are redesigning organisational structures, consolidating operations and redefining workplace models to support AI at scale.

For Uber, the latest changes suggest the company sees operational simplicity and closer collaboration as necessary foundations for expanding AI across its business while continuing to invest in future growth areas.