Uber is laying off 23% of its people division, which includes recruitment and human resources staff, as part of a restructuring effort led by new president Jill Hazelbaker. CEO Dara Khosrowshahi emphasized that these changes are essential for maximizing the effectiveness of the team and leveraging the company's potential.
Although the exact number of layoffs was not disclosed, they represent less than 1% of Uber's 34,000 employees. Hazelbaker noted that the organization had become overly complex and fragmented, with unclear responsibilities. This decision aligns with a trend among companies reducing headcount, often citing the benefits of artificial intelligence for improving efficiency.
While Uber did not directly link the layoffs to AI, it confirmed that it has established spending tiers for AI tools, indicating a significant investment in technology to enhance operations. The company's tech chief previously mentioned that Uber exceeded its AI budget for 2026 within just four months, highlighting the urgency and scale of its technological integration efforts