Uber Technologies is set to cut about 10% of staff, in its largest layoff round since 2020, Reuters reported. CEO Dara Khosrowshahi told employees that recent growth created more layers, fragmented ownership, and structures that no longer fit Uber’s scale.
Uber had roughly 34K employees globally in more than 70 countries at the end of 2025, Forbes reported. The cuts are expected to bring headcount below 30K.
Robotaxi spending is shaping the cuts
Uber plans to commit more than $10B to robotaxi partnerships in coming years. The company is trying to become the main marketplace for autonomous rides.
Waymo is expanding in some markets through Uber’s app while also growing independently. That has raised investor worries about Uber’s role between riders and vehicles.
Tesla has also doubled down on robotaxis, adding pressure to Uber’s human-driver model and its long-term take rate.
DoorDash, Instacart, and local delivery rivals are pressuring Uber Eats. That pressure is pushing Uber toward scale deals such as its $14.8B Delivery Hero acquisition.
"A leaner organization will mean clearer ownership."
Dara Khosrowshahi, Uber.
The company is targeting bureaucracy rather than blaming artificial intelligence, according to Bloomberg.
Management layers are the immediate target
Uber will reduce employees sitting seven or more reporting layers below Khosrowshahi by 20%. It will also cut micro-teams with only one or two direct reports by nearly half.
Some managers will move into individual-contributor roles, though Uber hasn’t disclosed what share of managers will leave.
The company is combining parts of engineering, science, and delivery operations. Those changes aim to reduce overlap across restaurants, retail, and white-label delivery.
Uber will also limit fully remote roles to about 1% of staff while keeping its three-day office policy. The return-to-office push will concentrate more employees around key hubs, including San Francisco and New York.
Bloomberg Intelligence analysts estimated the cuts could create $1.5B to $2B in annualized savings. They also warned that heavier autonomous vehicle investment may limit the near-term margin benefit.
Uber is shrinking the organization built for rapid expansion while funding a future where the car may matter more than the driver. Shares rose after the announcement, even as Uber’s stock remains down this year, according to CNBC.