Quick overview

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Uber’s recently promoted president, Jill Hazelbaker, announced that the company is eliminating 23% of positions in a division that includes human resources, recruitment, workplace amenities, and culture.

The cuts to the People and Places division—many of which are senior positions—represent less than 1% of Uber’s 34,000 workers worldwide. The majority of its roughly 10 million drivers are categorized as independent contractors.

HR staff members who had previously been granted permission to work remotely are also being asked to return to the office to comply with a three-day-a-week office mandate that went into effect last June.

Uber’s stock recovered from its early losses on Wednesday morning, falling 0.6 percent to $71.21 at 10:30 in New York. Three weeks have passed since Hazelbaker, a seasoned executive who managed communications, marketing, and policy, was elevated to the more senior position of president.

Hazelbaker stated, “As we’ve grown, parts of the organization have become too complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support.”

Unlike other tech companies, Uber has made more targeted cost-cutting measures rather than mass layoffs in the name of AI-driven investment and efficiencies. More than 800 positions, including those related to commercializing robotaxis, are still being filled. It stated last month that internal use of AI would cause hiring to slow.

Chief Executive Officer Dara Khosrowshahi stated, “These changes are necessary to maximize the effectiveness of the People team and the enormous potential ahead of us.” The recruiting team and online grocery subsidiary Cornershop were also targeted by Uber’s previous 2023 layoffs.