Uber has cut 10% of jobs in its customer service operations as part of a restructuring linked to its AI strategy.
The company also asked remote employees in the affected team to relocate to hub offices in line with its return-to-office policy.
The layoffs mark the first time Uber has directly linked workforce reductions to AI-driven efficiency efforts.
Uber Slashes 10% of Customer Service Workforce Amid AI Push
The ride-hailing company said the move is aimed at simplifying operations, strengthening in-person collaboration and expanding the use of artificial intelligence
AI generated Image
Summary
Advertisement
Uber Technologies has laid off 10% of employees in its customer service operations as part of a broader effort to simplify its organisational structure and expand the use of artificial intelligence (AI), according to a report by Bloomberg.
The company announced the job cuts within its community operations team on Wednesday. Uber also asked remote employees in the affected division to relocate to hub offices, in line with its return-to-office policy, Bloomberg reported.
An Uber spokesperson said the company is working to simplify operations, strengthen in-person collaboration and continue embracing AI as part of its organisational changes.
AI at the Centre of Restructuring
In an internal memo seen by Bloomberg, Megha Yethatika, Uber's Vice President of Global Community Operations, said the company's structure had become "too complex and siloed."
She said the team had already made progress in adopting AI but added that "to unlock this potential, we need an effective organization to layer AI on." Yethatika added that fragmented processes would make it difficult to scale advanced AI technologies effectively.
Advertisement
According to the report, this is the first time Uber has explicitly linked layoffs to its AI-driven efficiency efforts, joining a growing number of companies that have cited AI as a factor behind workforce reductions.
Second Round of Cuts in Two Months
The latest layoffs come less than two months after Uber reduced 23% of its People division, representing less than 1% of its global workforce of around 34,000 employees, following a leadership change in the department.
Bloomberg reported that Uber has not disclosed the total size of its customer service operations, making it unclear how many employees are affected by the latest round of job cuts.
Earlier this year, the company also said it would slow hiring because of increased internal use of AI. However, Uber continues to recruit for more than 500 open roles, including engineering positions to support its growing robotaxi partnerships, the report added.
Advertisement