Uber to Cut 3,300 Jobs as Robotaxi Competition Reshapes Ride-Hailing Business

Uber Technologies plans to cut about 3,300 jobs, or roughly 10% of its workforce, in its largest round of layoffs since the COVID-19 pandemic. CEO Dara Khosrowshahi said the restructuring will simplify the company’s management structure, reduce organizational layers and speed up decision-making as Uber prepares for major changes in the ride-hailing industry.

The cuts come as robotaxis emerge as a growing threat to Uber’s traditional business model. Waymo has expanded its driverless ride services, including operations through Uber’s platform in Austin and Atlanta, while Tesla and other companies are also pursuing autonomous vehicles. Uber plans to invest more than $10 billion in robotaxis in the coming years, seeking to position itself as a major marketplace for autonomous rides rather than being displaced by them.

Uber is also facing intense competition in its delivery business from companies including DoorDash and Instacart. The company said the leaner structure will generate savings that can be reinvested in growth, innovation and autonomous-vehicle capabilities. Uber shares rose nearly 2% following the announcement, although the stock has fallen about 8% this year, underperforming both the S&P 500 and rival Lyft.

Pic Courtesy: google/ images are subject to copyright