Uber Cuts 10% of Staff, Trims Micro-Teams and Management Layers

Uber is reducing its workforce by roughly 10 percent while flattening its structure, a move that directly affects how teams are organized and how many employees report to each manager. The changes target small groups with one or two direct reports and aim to shorten the distance between senior leaders and frontline staff. CEO Dara Khosrowshahi described the goal in an internal memo as creating a simpler organization chart focused on building rather than managing.

The restructuring follows earlier pandemic-era cuts and occurs as Uber competes in rides, delivery, and robotaxis. It reduces the number of micro-teams by nearly half and decreases the share of employees seven or more layers from the CEO by 20 percent. Similar shifts at other technology companies have been driven in part by AI tools that allow managers to oversee larger groups with less day-to-day guidance.

Executives at peer firms note that wider spans of control can make relationships more transactional and reduce opportunities for mentorship. Some leaders argue the approach requires managers to perform more hands-on work themselves. Uber stated it will retain some small teams when projects are new or highly uncertain, but the overall direction favors fewer layers and broader responsibility for remaining managers.