Ride-hailing and delivery giant Uber has announced a major corporate restructuring that involves eliminating more than 3,000 positions globally. The workforce reductions represent approximately 10 percent of the company's total staff and will return headcount to levels not recorded since 2021, bringing the total number of employees to just under 30,000.

Chief Executive Dara Khosrowshahi communicated the restructuring plans to employees through an internal message. According to the communication, the company experienced rapid growth over recent years that inadvertently created excessive management layers and numerous small teams, which ultimately hindered organizational agility.

The San Francisco-headquartered enterprise stated that the organizational overhaul aims to streamline operations and accelerate decision-making processes. Management hopes the leaner structure will generate financial savings that can be redirected toward core business areas, particularly as the firm scales up its investments in autonomous vehicle collaborations, robotaxi initiatives, and expanded delivery services.

Market reaction to the announcement was positive, with company shares climbing nearly two percent following the news. Financial analysts have estimated that the workforce reductions could yield savings of up to $2 billion annually. Unlike numerous major technology corporations that previously downsized due to heavy expenditures on artificial intelligence infrastructure, Uber had managed to avoid significant staff reductions since the pandemic until now.

The restructuring impacts both managerial and non-managerial personnel across the organization, with plans to consolidate many smaller operating units into larger divisions. Although the company has not specified which geographic locations will bear the brunt of the terminations, it is implementing stricter workplace policies alongside the structural changes. Nearly all personnel are now required to report to designated office hubs, with remote work arrangements restricted to roughly one percent of the workforce.

Reporting based on coverage first published by BBC News. Read the original report at BBC News.