Uber Technologies announced plans to cut about 3,300 jobs, representing roughly 10% of its global workforce, as CEO Dara Khosrowshahi moves to streamline the organization ahead of a larger push into autonomous vehicles. The stock rose about 2% in premarket trading after the announcement, suggesting investors initially viewed the restructuring as a sign of improved efficiency rather than weakening demand.
In an internal memo, Khosrowshahi said Uber's rapid expansion had created “more layers, more coordination, more fragmented ownership.” The company will reduce management layers by 20% and cut the number of micro-teams by nearly half. Uber is also consolidating engineering, science, and delivery operations, and will concentrate global teams in New York and San Francisco, allowing only about 1% of employees to remain remote. Once completed, the cuts will leave Uber with just under 30,000 employees, close to its 2021 level and marking its largest workforce reduction since May 2020.
The savings are intended to be reinvested in growth, innovation, and an “autonomous future.” Uber has committed more than $10 billion to robotaxi partnerships and invested in autonomous-vehicle players including Avride, Lucid, Nuro, and Rivian. Wall Street remains broadly bullish, with BMO Capital reiterating an Outperform rating and a $119 price target. However, competition from Waymo and Tesla continues to pose a key valuation risk. From a crypto market perspective, the announcement has no direct coin exposure and is treated as a neutral traditional equity event.
