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Uber lays off 3,300 employees in largest cuts since the pandemic

Al Jazeera · 2026-09-02

AI SUMMARY

• What happened: Uber Technologies announced the layoff of 3,300 employees, representing 10% of its workforce, marking the largest cuts since the COVID-19 pandemic. • Why it matters: The layoffs are part of Uber's strategy to streamline operations and focus on developing autonomous vehicles, despite the company experiencing strong financial growth. • What to watch next: Monitor Uber's progress in its robotaxi division and any further changes in its workforce and operational structure, as well as the company's stock performance in response to these developments.

**Uber Lays Off 3,300 Employees in Largest Cuts Since Pandemic**

*Published: September 2, 2026*

Uber Technologies has announced a significant reduction in its workforce, laying off 3,300 employees, which constitutes approximately 10 percent of its total staff. This marks the largest round of layoffs for the ride-hailing company since the COVID-19 pandemic began. The announcement was made in a memo to employees by CEO Dara Khosrowshahi.

The layoffs are part of Uber's strategy to streamline operations by reducing management layers and simplifying team structures. Khosrowshahi emphasized that these changes are essential as the company aims to focus on building an autonomous future while also increasing investments in drivers, couriers, and merchants. He noted that the organization would be made leaner to facilitate clearer ownership, quicker decision-making, and a greater emphasis on development rather than coordination.

In addition to the layoffs, Uber plans to cut the number of "micro-teams," where managers oversee only one or two direct reports, in half. This restructuring is intended to enhance operational efficiency within the company.

Khosrowshahi also indicated a shift in work culture, stating that the company is pushing for a return to office work. He mentioned that moving forward, only about 1% of employees would be allowed to work remotely, signaling a significant change in Uber's approach to workplace flexibility.

These layoffs follow a previous round of cuts in July, where Uber eliminated 10 percent of its customer service roles as part of a broader integration of artificial intelligence into its operations. The company had already announced a hiring slowdown in May, attributing the decision to advancements in AI technology.

The layoffs come at a time when Uber is investing heavily in its robotaxi division, with plans to allocate $10 billion to enhance its presence in the autonomous vehicle market. However, the company faces challenges, including increasing competition from other firms in the sector. Notably, Waymo operates driverless cars through Uber in select cities, while Tesla is expanding its own robotaxi initiatives.

Despite the layoffs, Uber has reported strong financial growth. According to its most recent annual report, the company's revenue surged by 18 percent from 2024 to 2025, reaching $52 billion. In the second quarter of 2026, revenue continued to grow, increasing by 12 percent to $14.2 billion, although this represented a moderation in growth compared to previous quarters.

Khosrowshahi's compensation has also come under scrutiny, as he was reported to have earned 360 times more than the average Uber employee in 2025, according to the AFL-CIO’s Executive Paywatch Tracker.

On Wall Street, Uber's stock performance has been mixed, with shares down 8 percent for the year. However, following the announcement of the layoffs, the stock rose by more than 1.6 percent during midday trading.

The tech industry as a whole has seen substantial job cuts in 2026, with over 123,000 employees laid off across nearly 290 companies, according to Layoffs.fyi, a website that tracks job losses in the sector.

As Uber navigates these changes, the company's focus on innovation and operational efficiency will be crucial in maintaining its competitive edge in the rapidly evolving ride-hailing and autonomous vehicle markets.

Source: Al Jazeera
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