Uber Cuts Customer Support Workforce, Tweaks Hiring Priorities

Uber Technologies has laid off around 10% of its customer service workforce as the ride-hailing and delivery platform accelerates the adoption of artificial intelligence (AI), streamlines operations, and reinforces its return-to-office strategy.

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This is a broader shift nowadays across the technology industry, where AI is increasingly influencing workforce planning and organisational design.

According to Bloomberg, the layoffs impact employees in Uber’s Community Operations division, the team responsible for supporting riders, drivers, and delivery partners.

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Alongside the workforce reduction, the company has directed several remote employees to relocate to designated office hubs to strengthen in-person collaboration.

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AI Drives Organisational Restructuring

In an internal memo, Megha Yethatika, Vice President of Global Community Operations, said the customer service organisation had become “too complex and siloed” to fully leverage the benefits of AI.

She noted that while Uber has made meaningful progress in integrating AI into its operations, fragmented processes have limited its ability to scale advanced technologies effectively.

We cannot scale frontier technology on top of fragmented processes,” Yethatika wrote in the memo.

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Uber has not disclosed the total number of employees in its customer service operations, and the company has not revealed the exact number of roles affected by the latest layoffs.

Second Workforce Reduction in Two Months

The latest restructuring marks Uber’s second round of job cuts in less than two months.

In June, the company reduced nearly 23% of its People division, representing less than 1% of its global workforce of approximately 34,000 employees, following leadership changes aimed at simplifying the organisation.

Notably, this is the first time Uber has explicitly linked workforce reductions to its AI strategy, highlighting how artificial intelligence is beginning to reshape operational structures rather than simply improve productivity.

Hiring Shifts Towards AI and Engineering Roles

While Uber indicated in May that it would slow overall hiring due to increased internal AI adoption, the company continues to recruit for more than 500 open positions, particularly in engineering and technology roles supporting its expanding robotaxi initiatives.

The hiring pattern suggests Uber is reallocating talent investments toward AI, automation, and advanced mobility technologies while reducing headcount in functions where routine work can increasingly be automated.

AI Continues to Transform Workforce Strategies

Uber joins a growing list of technology companies adjusting workforce strategies as AI becomes more deeply embedded in business operations.

Companies including Block and Oracle have also cited AI-driven transformation as a factor behind recent restructuring initiatives.

The latest move underscores a broader industry trend: AI is evolving from a productivity tool into a strategic driver of organisational redesign, changing not only how work is performed but also the types of roles companies prioritise for future growth.

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