Uber cuts 3,300 jobs (~10% of staff) as it expands AI-powered rides

Uber announced a reduction of roughly 3,300 positions, representing about 10% of its workforce, while pushing forward its AI-driven ride-hailing service. The cuts include 93 roles in its Seattle engineering hub and come as the company rolls out AI taxis in London at no extra cost to riders. Analysts note the layoffs follow a surge in profits and a broader industry trend of tech-focused restructuring.

Uber Technologies disclosed a major workforce reduction, eliminating approximately 3,300 jobs, or about one-tenth of its global staff, as part of a broader restructuring effort tied to its AI ride-hailing strategy. The move includes the removal of 93 positions in the company's Seattle engineering hub, signaling a scaling back of development resources in that region.

The layoffs coincide with Uber's aggressive rollout of AI-powered taxis in London, which the company is offering to riders without additional fees, underscoring its push to embed artificial intelligence into core service offerings. The expansion follows a period of improving profitability, with net income up sharply year over year in the most recent quarter.

The reported shape of the restructuring is a flattening of management layers and a sharp reduction in the company's smallest teams. It is also framed as a response to regulatory pressures, including lawsuits from European drivers contesting AI-driven pay models.

Looking ahead, analysts will watch how Uber balances cost reductions with its AI ambitions, particularly whether the reduced headcount hampers innovation or improves efficiency. The company's ability to sustain profit growth while navigating driver litigation and competitive pressures in the autonomous-vehicle space will be critical to its long-term market positioning.

Uber cuts 3,300 jobs (~10% of staff) as it expands AI-powered rides

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