Uber Reduces Headcount by 23% in HR, People Division Amid Leadership Transition
Uber Cuts 23% of Jobs in People and Places Division
Uber Technologies has announced plans to cut 23% of jobs in its People and Places division, a move aimed at simplifying the company's team structure. The division, which includes human resources, recruitment, workplace facilities, and culture, will see a reduction in senior roles, representing less than 1% of Uber's global workforce of 34,000 employees.
The cuts are part of a broader effort by new President Jill Hazelbaker to streamline the company's operations. Hazelbaker, who was promoted to the expanded role of president and chief corporate affairs officer three weeks ago, has emphasized the need to eliminate complexity and fragmentation within the organization. In a memo to affected teams, Hazelbaker noted that certain parts of the organization had become "too complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support."
The changes are unrelated to AI, according to a spokesperson, and are instead focused on trimming costs. Uber has taken a targeted approach to layoffs, unlike some other tech companies that have implemented mass cuts in the name of AI-driven investment and efficiencies. The company is still hiring for over 800 roles, including commercializing robotaxis.
Read also: CLSA Predicts LTM Revenue to Double Over Five Years Led by AI-Fueled Growth
The job cuts will also impact HR employees who were previously approved to work remotely. They will be required to return to the office, as part of a three-day-a-week office mandate that went into effect last June. Uber's shares pared their early losses on Wednesday morning following the news, and were down 0.6% to $71.21 at 10:30 am in New York.
| Division | Number of Employees (approximate) |
|---|---|
| People and Places | 10,000 |
| Total Global Workforce | 34,000 |
Note: The numbers in the table are approximate, and based on the information provided in the article.
Investor Takeaway
Uber's restructuring efforts may have a limited impact on its overall performance.
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