Uber has begun reducing its workforce by 10% globally as part of a restructuring plan designed to streamline operations. CEO Dara Khosrowshahi announced the changes in an internal memo, stating that affected employees had received notifications, except where local regulations mandated further steps. This decision comes after a phase of aggressive expansion, during which the company achieved a 20% increase in annual gross bookings for the fifth consecutive year in 2025.
The workforce reductions target operational inefficiencies that have emerged alongside Uber’s growth. Khosrowshahi noted that growth had introduced complexity with “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.” The restructuring specifically includes cutting employees seven or more levels below the CEO by 20% and eliminating nearly 50% of its smallest teams—those with one or two direct reports. Additionally, the company is requiring most remote workers to relocate to major offices in New York, San Francisco, or regional centers.
Financial results released in Uber’s Q2 2026 earnings show continued strength despite the layoffs. Gross bookings reached $58 billion, up 24% year-over-year, while revenue grew 12% to $14.2 billion. Adjusted EBITDA also rose 33% to $2.8 billion. These figures coincide with Uber’s broader push to dominate autonomous vehicle trips, a strategy Khosrowshahi described as a “clear path” to achieving that goal during the company’s 2025 earnings call. The first robotaxis from Uber’s collaboration with Wayve launched in London on Thursday, marking a key milestone in that initiative.
Read Also: AI reshapes travel investments through automation, luxury curation
Uber’s Restructuring Aims to Reduce Complexity and Improve Efficiency
The company is reorganizing its global operations to eliminate outdated ownership and structural layers that no longer align with its current scale. These changes target areas where decision-making has become overly complicated, particularly in teams and reporting lines that were suitable for smaller operations but now hinder performance.
Uber’s adjustments are intended to create a leaner, more responsive organization while redirecting resources to its biggest opportunities. Khosrowshahi wrote that the changes would make Uber “simpler and faster” and generate savings to reinvest.