Uber is set to lay off approximately 3,300 employees, which constitutes about 10% of its global workforce. The company announced these changes in an internal email from CEO Dara Khosrowshahi, published on Wednesday.
The layoffs are part of a restructuring exercise designed to reduce management layers by 20% and allow some personnel in these roles to transition to individual contributor positions. Uber also plans to reduce the number of teams with one or two members by 50% and dismiss staff who are "more than seven layers down from the CEO."
As part of the restructuring, Uber is combining its engineering, science, and delivery divisions. It is also bringing together its delivery operations across restaurants, retail, and direct divisions. Furthermore, the company is significantly reducing remote jobs, with less than 1% of its staff permitted to work remotely going forward.
Khosrowshahi reportedly stated in the email that while growth has made Uber a larger and stronger company, it has also brought "complexity: more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale."