• Uber is laying off 23% of its people division, affecting about 170 employees.
  • The cuts come as new President of Mobility, Andrew Macdonald, takes over HR responsibilities.
  • The move is part of CEO Dara Khosrowshahi's broader cost-cutting efforts.

Restructuring at Uber

Uber Technologies Inc. is cutting about 23% of its human resources staff, or roughly 170 positions, as new President of Mobility Andrew Macdonald assumes oversight of the people function. The layoffs, confirmed by a person familiar with the matter, are part of CEO Dara Khosrowshahi's ongoing efficiency drive.

“We’re streamlining our HR operations to be more agile and responsive,” a company spokesperson said in a statement, declining to provide further details. Macdonald, who previously led Uber’s rides business, took on the expanded role last month.

The reductions affect employees in recruiting, employee relations, and other HR sub-functions. Affected workers will receive severance and outplacement support, the person said.

Background

Uber has been cutting costs across the board since the pandemic decimated its ride-hailing business. The company has shed thousands of jobs over the past two years, including a 14% reduction in its workforce in 2020. Khosrowshahi has emphasized operational discipline as Uber aims for profitability.

The latest cuts follow a broader trend of tech companies trimming HR departments after pandemic-era hiring sprees. Meta Platforms Inc., Amazon.com Inc., and Alphabet Inc. have all made similar moves.

Industry Context

The layoffs come as Uber faces a tight labor market for drivers and regulatory pressures in various markets. The company has been investing in autonomous vehicles and delivery services to diversify revenue.

Analysts at Jefferies noted in a research report that the restructuring “signals management’s commitment to cost control.” Uber shares were up 1.2% in midday trading following the announcement.

Correction: An earlier version of this article misstated the number of employees in the people division. The division has about 750 staff, not 600.