Uber layoffs: Company trims HR workforce by 23%, says AI not behind cuts

Uber has carried out a fresh round of job cuts, reducing staff within the team responsible for human resources, recruitment and workplace operations as the ride-hailing giant reshapes its internal structure.

According to reports, approximately 23 per cent of employees in Uber's People and Places division have been affected by the restructuring. While the company has not disclosed the exact number of roles eliminated, reports suggest the reduction accounts for roughly 1 per cent of Uber's overall workforce.

The move follows a leadership reorganisation that placed President Jill Hazelbaker in charge of the division, with a mandate to simplify operations and improve organisational effectiveness.

Uber currently employs more than 34,000 people globally.

The layoffs come at a time when technology companies across the world are reassessing their workforce needs, streamlining operations and investing in artificial intelligence initiatives. However, Uber has stressed that the latest job reductions are unrelated to AI adoption.

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Uber seeks a leaner organisational structure

In a memo to employees, CEO Dara Khosrowshahi said the restructuring was designed to maximise the effectiveness of the People team and better position the company for future growth.

The People and Places division oversees key functions including talent acquisition, employee experience, workplace management and human resources operations.

According to comments attributed to Hazelbaker in reports, parts of the organisation had become increasingly fragmented over time, creating overlapping responsibilities and making it difficult to establish clear accountability.

She reportedly told employees that the changes are intended to create a more connected and operationally efficient organisation. Some teams, she noted, had become too detached from the business units and employees they were meant to support, limiting their effectiveness.

The restructuring is aimed at simplifying reporting structures and reducing complexity across the department, allowing teams to work more closely with business leaders and operational units.

Uber has not indicated whether additional organisational changes are planned elsewhere within the company.

AI spending surge draws attention

Although Uber has emphasised that artificial intelligence was not a factor behind the layoffs, the company has recently found itself grappling with a different AI-related challenge: rapidly rising employee demand for AI tools.

Earlier reports, citing Uber's technology leadership, suggested the company exhausted its planned 2026 budget for AI tools within just four months.

The surge was reportedly driven by growing use of agentic AI systems, software tools capable of carrying out tasks with limited human intervention. Such tools are becoming increasingly popular across the technology sector as companies look to automate workflows and improve productivity.

In response to the unexpected spending spike, Uber introduced tiered limits on employee access to AI tools.

Under the new framework, staff members in the base usage category are subject to a monthly spending cap of $1,500, although higher limits can be approved depending on business needs.

The episode highlights the balancing act facing many large technology firms. While companies are eager to embrace AI-powered tools to improve efficiency, they are also discovering that widespread adoption can bring significant infrastructure and cost challenges.

For Uber, the latest workforce changes represent part of a broader effort to simplify internal operations and improve execution. At the same time, the company is navigating the rapid emergence of AI technologies that are reshaping how employees work and how businesses allocate resources.

As the technology sector continues to evolve, organisations like Uber are increasingly being forced to rethink both their workforce structures and their approach to emerging technologies.