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Uber cuts 10 per cent of its global workforce to fund autonomous vehicles

Chief executive Dara Khosrowshahi reduced micro-teams by nearly half and removed management layers just four weeks after the company reported $1.9 billion in quarterly operating income.

5 min read
Uber chief executive Dara Khosrowshahi speaking on a conference stage
Uber chief executive Dara Khosrowshahi. Digitally illustrated image.
Zara Kincaid
By Zara Kincaid · 2026-09-03

TLDR

Uber is cutting about 10% of its global workforce, roughly 3,300 roles, while reporting strong operating profit. The company's own memo ties the cuts directly to flattening management and freeing up capacity to invest in ride-sharing, delivery and autonomous vehicles.

KEY TAKEAWAYS

01Uber announced a roughly 10% global workforce reduction on 2 September 2026.
02The company had approximately 34,000 employees at 31 December 2025.
03Staff sitting seven or more layers from the CEO fell by 20% under the restructure.
04Micro-teams were reduced by nearly 50%, according to the company memo.
05Uber reported $1.9 billion in GAAP operating income for the June 2026 quarter.

What Uber said it is cutting and why

Uber said on 2 September 2026 it would cut about 10% of its global workforce.[1] Based on the approximately 34,000 employees Uber reported in its 2025 Annual Report on Form 10-K, that reduction points to roughly 3,300 roles.[2] Uber has not said a precise number; the 3,300 figure is derived from the company's own headcount disclosure and the said 10% reduction.

The announcement came in a company post titled "Building a simpler, faster Uber," published on the Uber newsroom on 2 September 2026.[1] CEO Dara Khosrowshahi said the company was "removing layers, simplifying team structures, refining our global location strategy, and focusing our people and investments against the biggest opportunities ahead of us."[1]

The memo was specific about where the cuts landed. Employees sitting seven or more layers from the CEO were reduced by 20%.[1] Micro-teams were reduced by nearly 50%.[1] Both figures point to cuts targeting bureaucratic layers rather than front-line roles.

Khosrowshahi framed the purpose plainly: "The changes we're making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future."[1] The memo named ride-sharing, delivery and autonomous vehicles as the investment targets.

Why the move stands out at a profitable company

Four weeks before the announcement, Uber reported its June 2026 quarterly results. GAAP income from operations reached $1.9 billion, and non-GAAP operating income came in at $2.1 billion, up 40% year on year.[3] Uber was cutting from a position of profit, not distress.

The memo's language is worth reading carefully against that backdrop. Uber calls the outcome "capacity creation." Management layers cost money; driverless-car development costs more. Stripping one funds the other.

Uber's position is that flatter structures speed decision-making across all its growth areas, not just autonomy, and that simplification was overdue after years of rapid expansion across more than 70 countries. Whether the savings flow to robotaxis or to broader operational speed, the cuts serve the same said goal: more investment directed at the next phase of growth.

What the cuts do and do not cover, including Australia

The 10% figure covers Uber's employee base. Uber's 2025 Annual Report on Form 10-K said that Australia's Fair Work Legislation Amendment affirms the independent contractor status of platform workers.[2] Australian drivers and Uber Eats couriers are independent contractors and sit outside the 34,000-employee headcount entirely, so they are not part of the 3,300 figure.

Uber has made no verified statement about cuts to Australian employee roles specifically. The 2 September post did not break out regional detail.

The memo does make Uber's said rationale clear. Staff reductions are tied directly to funding and focus for its next growth bets, with autonomous vehicles named alongside ride-sharing and delivery as the destinations for freed-up capacity.

FREQUENTLY ASKED QUESTIONS

How many jobs is Uber cutting?
Uber said it would cut about 10% of its global workforce. Based on its last reported headcount of approximately 34,000 employees as at 31 December 2025, that works out to roughly 3,300 roles. Uber has not disclosed a precise figure.
Why is Uber cutting staff if it is profitable?
Uber's own memo says the cuts are designed to flatten management layers and create more capacity to invest in ride-sharing, delivery and autonomous vehicles. The company reported $1.9 billion in GAAP operating income for the June 2026 quarter, weeks before the announcement.
Are Australian Uber drivers or couriers affected?
No. Australian drivers and Uber Eats couriers are independent contractors. They sit outside Uber's employee headcount and are not part of the roughly 3,300 roles being cut. Uber has made no verified statement about cuts to Australian employee roles.
Zara Kincaid

Zara Kincaid

Zara Kincaid writes about artificial intelligence and search. Her focus is what happens to businesses when the front page of the internet stops being a list of links and starts being an answer.

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