Uber to cut 10% of workforce to reduce costs

Uber is laying off 10% of its global workforce as part of a strategy to streamline operations and simplify its business structure. CEO Dara Khosrowshahi announced in a memo to employees that the cuts affect approximately 3,400 jobs based on the company's headcount from the end of last year. Khosrowshahi stated that the move is intended to boost efficiency and allow the company to invest more in innovation, such as autonomous driving, as well as its drivers and merchants. Wedbush Securities estimated that the layoffs would save the company roughly $1.7 billion. Additionally, Uber is implementing a new location strategy that mandates in-person work at major office hubs. The company stated that only about 1% of its workforce will be permitted to work remotely in the future, requiring most remote employees to relocate to designated office locations. Khosrowshahi emphasized that the benefits of in-person collaboration are clearer than ever in a post-COVID environment. Following the announcement, Uber shares rose by as much as 2.5% on Wednesday.