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

Uber announced plans this week to slash the number of its smallest teams and flatten parts of its management structure as part of broader layoffs affecting roughly 10 percent of its workforce. Chief executive Dara Khosrowshahi described the changes in an internal memo as a move toward an organization built around doing rather than overseeing, with fewer layers between individual contributors and senior leaders.

The company intends to cut so-called micro-teams—groups with only one or two direct reports—by nearly half. In parallel, some middle managers will oversee larger numbers of employees. The stated goal is a simpler reporting chart that favors execution over coordination. This approach aligns with shifts already underway at other large technology firms, where leaders have sought to eliminate redundant oversight roles and push decision-making closer to the people doing the core work.

Khosrowshahi’s memo frames the reductions as a response to years of rapid hiring that left the company with overlapping responsibilities and slow processes. By shrinking the number of small, self-contained groups, Uber hopes to limit the administrative overhead that accumulates when every handful of employees requires its own manager. The changes also reflect a broader industry pattern in which executives have questioned whether extensive management layers improve outcomes or simply multiply meetings and status updates.

Employees affected by the layoffs will receive severance and transition support, according to the company. Those remaining will operate under revised team structures that place greater emphasis on individual output and cross-functional collaboration rather than dedicated supervisory roles. Several managers are expected to shift into individual-contributor positions, a model sometimes called player-coach in technology circles.

The timing coincides with continued pressure on ride-hailing and delivery margins as competition intensifies and macroeconomic conditions remain uncertain. Uber has reported improving financial results in recent quarters, yet leadership has signaled ongoing attention to cost discipline. Reducing internal complexity is presented as one lever for sustaining that progress without repeated rounds of large-scale cuts.

Critics of similar moves at other companies have noted that fewer managers can leave teams with less mentoring and career guidance, particularly for newer or junior employees. Uber’s announcement does not detail how performance reviews, promotions, or day-to-day coordination will change under the new structure. The company has said it will monitor productivity metrics and adjust as needed.

For workers who joined through personal networks or contract arrangements, the reorganization may alter day-to-day dynamics in ways that extend beyond head-count numbers. Smaller teams often foster close relationships that can blur professional boundaries, while larger spans of control tend to enforce more standardized processes. Uber’s move signals that the balance is shifting toward the latter, at least for now.