Uber layoffs 23% of its HR workforce; CEO says ‘Changes are necessary’

Uber has announced a significant reduction in its human resources and people-operations staff, laying off 23% of the workforce in that department as part of a broader effort to enhance operational efficiency. This decision is spearheaded by the newly appointed president, Jill Hazelbaker, although the company has made it clear that the layoffs are not directly tied to artificial intelligence initiatives. While the exact number of affected employees has not been disclosed, reports indicate that these cuts represent a small fraction—less than 1%—of Uber's overall workforce, which totals approximately 34,000. In an internal memo, CEO Dara Khosrowshahi emphasized the need for these changes to improve the effectiveness of the People team and leverage the company's potential for growth. Hazelbaker, who recently took on the role of chief corporate affairs officer and president, noted that the decision to downsize will help create a more cohesive and operationally efficient organization. She pointed out that the existing structure of the People team was overly complex, with overlapping responsibilities and lack of clear ownership, leading to inefficiencies. As Uber navigates these layoffs, it joins a growing list of tech companies that are also making workforce reductions. However, Uber insists that these decisions are not influenced by advancements in AI. A recent Bloomberg report mentioned that the company had imposed spending limits for employees utilizing AI tools, with a cap of $1,500 per month, while also allowing for flexibility when justifications are provided. Despite these constraints, Uber is actively expanding its AI capabilities, with reports indicating that its technology division quickly exhausted its AI budget for 2026 within just four months. This rapid increase in AI-related expenses reflects the company's commitment to integrating advanced technologies across its teams.