Uber Technologies has cut nearly a quarter of its human resources organization, eliminating 23% of employees in its People and Places division, as the ride-hailing giant pushes through a significant internal restructuring while simultaneously expanding its investment in artificial intelligence.
The layoffs come at a moment when technology companies are facing heightened scrutiny over whether AI-driven productivity gains are replacing workers. Uber executives have moved quickly to reject that narrative, insisting the cuts stem from organizational redesign rather than automation.
The restructuring affects teams responsible for human resources, recruiting, and workplace operations. Although Uber did not disclose the exact number of affected employees, the company told CNBC the reductions represent less than 1% of its approximately 34,000-person global workforce.
The move follows a broader management shakeup inside the company. Earlier this year, Uber elevated Jill Hazelbaker to the newly created role of president and chief corporate affairs officer, giving her expanded oversight responsibilities during a period of organizational change.
In a memo to employees, Hazelbaker described the People and Places organization as increasingly difficult to manage due to overlapping responsibilities and fragmented reporting structures.
According to Hazelbaker, portions of the department had developed duplicate functions, unclear accountability, and teams operating too far from the business units they were intended to support. The restructuring, she said, is designed to create a more streamlined and efficient operating model.
Chief Executive Dara Khosrowshahi echoed that message in a separate communication to employees.
"These changes are necessary to maximise the effectiveness of the People team and the enormous potential ahead of us," Khosrowshahi wrote.
The layoffs arrive against the backdrop of a rapidly evolving technology sector where workforce reductions are increasingly being linked to advances in artificial intelligence. Several major companies have publicly acknowledged that AI-driven efficiencies are allowing them to slow hiring or reduce staffing needs.
Uber has taken a different position.
A company spokesperson said the job cuts were unrelated to artificial intelligence initiatives and were instead part of a broader effort to simplify internal operations. The clarification comes as investors and employees increasingly examine whether AI adoption is contributing to workforce reductions across corporate America.
The denial is particularly notable because Uber has been aggressively integrating AI tools into its business.
Last month, Khosrowshahi said employees were becoming more productive through the use of artificial intelligence. He also indicated that those productivity gains were influencing hiring decisions in certain areas of the company, fueling speculation about AI's role in workforce planning.
At the same time, Uber executives have acknowledged that AI investments are generating significant costs.
Chief Operating Officer Andrew Macdonald recently said productivity improvements resulting from AI usage were not yet fully offsetting expenditures on AI tokens and related services. The comments highlight a challenge facing much of the technology industry: balancing massive spending on AI infrastructure against uncertain near-term returns.
Uber's financial controls reflect that pressure.
The company recently introduced new spending limits for employees using agentic AI tools, establishing a base monthly allowance of $1,500 while permitting higher spending levels with approval. Reports indicate Uber's technology organization exhausted its planned 2026 AI budget within just four months, underscoring the pace at which AI-related expenses are growing.
