Uber to cut 10% of jobs, concentrate workers in NY and SF

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Uber headquarters in San Francisco, California, US (Michaela Vatcheva/Bloomberg via Getty Images)

SAN FRANCISCO - Uber technologies announced on Wednesday that the company would be cutting 10% of its workforce, or roughly 3,300 employees.

CEO Dara Khosrowshahi announced the "significant operational change" in a memo shared on the company’s website.

"We are removing layers, simplifying team structures, refining our global location strategy, and focusing our people and investments against the biggest opportunities ahead of us," Khosrowshahi’s statement reads.

Timing

What we know:

The CEO stated the job cuts are the result of the company’s growth in recent years, with the goal of making the company "simpler and faster, and create more capacity to invest in our future."

"We’ve built new products, expanded into businesses, reached more consumers and supported more earners, and become a much larger and stronger company," Khosrowshahi said in a statement. "But that growth 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."

New plan

What's next:

The company’s new strategy will concentrate global teams into either the San Francisco or New York offices.

"Global teams will be concentrated in our largest global hubs, NY and SF; regional teams in designated regional hubs; local teams in country hubs; and tech teams in tech hubs," Khosrowshahi wrote.

Khosrowshahi also announced that Uber, going forward, would require the majority of its employees to work in-office at least three days a week.

"We are also asking the vast majority of remote employees to move to an office, and going forward, only ~1% of employees will be remote," the statement reads. "We’ll also continue to reinforce compliance with our hybrid work policy, which requires three days a week in the office."