Uber slashes people division by nearly a quarter. CEO says 'changes are necessary'

Uber is making significant changes to its operations by cutting 23% of jobs within its people division. This decision comes as part of a strategy led by the newly appointed president, Jill Hazelbaker. CEO Dara Khosrowshahi emphasized in a memo that these adjustments are essential to enhance the effectiveness of the People team and to harness the substantial potential that lies ahead. The layoffs will affect personnel involved in recruitment and human resources. Although Uber has not specified the exact number of positions eliminated, a representative from the company indicated that these reductions represent 'well under 1%' of its total workforce of 34,000 employees. In a message directed at the affected employees, Hazelbaker, who recently took on the role of president and chief corporate affairs officer, explained that the goal of the layoffs is to create a 'more connected, modern, operationally excellent organization.' She noted that some departments have become overly complex and fragmented, with overlapping duties and unclear responsibilities, leading to teams that operate too distantly from the businesses and partners they serve. This restructuring aligns with a broader trend among numerous firms that are downsizing their workforces, often citing the advantages of artificial intelligence in automating tasks and enhancing efficiency. While Uber has not directly linked these job cuts to AI developments, the company confirmed that it has tiered usage of agentic tools for employees, with a base tier costing $1,500 per month. Uber's technology chief had previously mentioned that the company surpassed its AI budget for 2026 within just four months. A spokesperson clarified that these are 'soft limits' designed for agentic and coding technologies, with budgets allocated per tool. 'We have had spend tiers on some agentic AI tools for several months,' they stated, highlighting the evolving landscape of technology within the organization.