Ride-hailing giant Uber has announced a significant restructuring of its human resources and recruiting operations, laying off approximately 23% of employees in its People and Places division. The move is part of a broader organizational overhaul aimed at simplifying internal structures, improving efficiency and aligning support functions more closely with business priorities.
The layoffs affect Uber’s human resources, recruitment and workplace operations teams. Despite the sizable reduction within the department, the company clarified that the cuts account for less than 1% of its global workforce of around 34,000 employees.
Uber CEO Dara Khosrowshahi defended the decision, stating that the changes were necessary to make the People organization more effective and help the company unlock its full potential. Company leadership indicated that the restructuring is designed to reduce complexity, eliminate overlapping responsibilities and create a more streamlined organizational framework.
The workforce reduction follows a recent leadership reshuffle that elevated longtime executive Jill Hazelbaker to a newly created role overseeing several corporate functions, including human resources, recruiting, communications and safety operations. Under the new structure, Uber aims to centralize decision-making and improve coordination across departments.
According to internal communications cited in reports, Uber identified excessive fragmentation and operational complexity within certain teams. Company executives believe that simplifying reporting structures and reducing management layers will help employees work more efficiently and respond faster to business needs.
The announcement has attracted attention because it comes amid growing discussions about the role of artificial intelligence in workplace restructuring. However, Uber has explicitly stated that the layoffs are not directly related to AI adoption. Company representatives emphasized that the decision was driven by organizational redesign rather than automation replacing jobs.
Nevertheless, Uber has been actively investing in AI technologies across its operations. Earlier this year, the company acknowledged that AI tools were helping improve employee productivity and had also introduced measures to manage rising AI-related operational costs. Industry observers note that while Uber denies a direct connection between AI and the latest layoffs, technology-driven efficiency improvements continue to influence workforce planning across the corporate sector.
The restructuring reflects a broader trend across the technology industry, where companies are reassessing organizational structures to improve efficiency and profitability. Many firms have sought to flatten hierarchies, reduce administrative overhead and focus resources on growth areas such as artificial intelligence, automation and product development.
Employees affected by the layoffs are expected to receive severance support and transition assistance. Uber has not disclosed the exact number of jobs eliminated, but reports indicate that the reductions primarily impacted recruitment and HR functions, including some managerial and senior-level positions.
The latest move highlights how even financially strong technology companies are continuing to refine their organizational models amid changing business priorities. While Uber remains profitable and continues to expand globally, the company appears focused on building a leaner corporate structure capable of supporting long-term growth and operational agility.
As the technology industry continues to evolve, Uber’s restructuring serves as another example of how major corporations are balancing workforce management, technological transformation and business efficiency in an increasingly competitive environment.
