Uber has started a major reorganization of its corporate workforce, cutting 23% of employees in its People & Places division, the team that handles human resources, recruiting, workplace operations, employee experience and company culture – reports Bloomberg. The reductions are focused mainly on managers and senior-level employees, as the company looks to reduce layers of management and make decision-making faster and more efficient. While the percentage seems significant, Uber said the affected roles account for less than 1% of its total workforce of around 34,000 employees worldwide.
It is worth noting that the move comes shortly after a major leadership change at the company. In May, Chief People Officer Nikki Krishnamurthy stepped down after several years overseeing Uber’s global people strategy. Uber then promoted Jill Hazelbaker to the newly created role of President and Chief Corporate Affairs Officer. In addition to her existing responsibilities in marketing, communications and public policy, Hazelbaker was given oversight of the People organization and Safety Operations, bringing several important corporate functions under one leadership structure.
And now, the restructuring appears to be one of the first major changes under this new setup. By combining human resources, safety, communications and public affairs under a single executive, the ride-hailing giant is creating a more centralized management model. Hazelbaker is one of the company’s longest-serving senior leaders, having joined Uber in 2015, and her expanded role gives her influence over many of the company’s internal and external operations at a time when Uber is dealing with challenges ranging from regulation and labour issues to AI and autonomous vehicles.
The layoffs also show a broader trend across the technology industry. Earlier, Uber CEO Dara Khosrowshahi said that advances in AI are improving employee productivity and changing how companies think about hiring. AI tools are already being used across different parts of Uber’s business, including software development and internal operations.
However, despite the job cuts, the company is not pulling back from its major growth plans. The firm remains one of the world’s largest mobility and delivery platforms, serving millions of riders and customers and working with around 10 million drivers and couriers globally. Uber continues to invest in areas it sees as key to its future, including autonomous vehicle partnerships, delivery services, advertising, enterprise mobility products and AI-powered technologies. The company has also continued hiring in selected business areas, indicating the cuts are targeted rather than part of a broader hiring freeze.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
