Mass Layoff: Uber Announces Cut of 3,300 Employees in Largest Reduction Since Pandemic

Largest Layoff Since Pandemic Eliminates 3,300 Positions, Streamlines Corporate Structure and Reveals Threat to Transform the App into Something Very Different

Uber announced the layoff of approximately 3,300 employees, in what will be its largest workforce reduction since the peak of the Covid-19 pandemic. The number represents about 10% of the company’s entire corporate workforce and is part of a deep reorganization to prepare the company for a transformation that could strike at the very heart of its business: autonomous vehicles.

The announcement came on Wednesday, September 2, 2026, and was communicated to employees by CEO Dara Khosrowshahi. According to information released by Reuters and published by CNN Brasil, Uber had approximately 34,000 employees worldwide at the end of last year.

Unlike what has happened with various tech giants in recent months, the company states that the cuts are not directly caused by artificial intelligence.

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Uber Aims to Eliminate Management Levels and Create a Leaner Structure

One of the main changes will occur precisely within the administrative structure.

The company intends to reduce by 20% the number of employees positioned seven or more levels below the CEO. In addition, teams consisting of managers with only one or two direct reports will be reduced by approximately half.

In practice, Uber aims to eliminate some of the intermediate management layers that emerged during years of accelerated expansion.

According to Khosrowshahi, a smaller structure should allow for clearer responsibilities, quicker decisions, and greater concentration of employees on product development instead of internal coordination processes. The savings achieved through this reorganization will be redirected toward growth and innovation.

This move did not occur in isolation.

In June, Click Petróleo e Gás had already reported a previous restructuring at Uber, when the company made cuts primarily affecting human resources and recruitment areas. See the previous Uber reorganization on CPG

This week’s announcement significantly expands that process.

Robotaxis Present a New Challenge for Uber

Behind the reorganization lies a technological competition that could redefine urban transportation over the next few years.

For over a decade, Uber has built its model by connecting passengers to drivers through a digital platform. However, with the rise of robotaxis, this model begins to face a structural change.

Companies like Waymo and Tesla have been increasing investments in vehicles capable of transporting passengers without human drivers.

Waymo already maintains a commercial relationship with Uber in some U.S. cities, such as Austin and Atlanta, but has also started expanding its operations into other markets independently.

This scenario creates a delicate situation for Uber.

If companies owning autonomous technologies begin to operate large fleets of robotaxis directly, the app could face competitors that simultaneously control the software, the vehicles, and the operation of the rides.

Therefore, Uber does not intend to watch this transformation from a distance.

More than US$ 10 billion is focused on the strategy for autonomous vehicles

The company plans to invest more than US$ 10 billion in robotaxis over the next few years, supporting companies responsible for developing autonomous systems and attempting to position its app as a kind of global marketplace for driverless rides.

This shift helps explain why Uber believes a different workforce is necessary compared to the one used during the app’s traditional expansion.

An operation primarily based on human drivers requires teams focused on support, relationships, recruitment, security, and numerous operational processes.

An ecosystem formed by autonomous vehicles can profoundly alter this structure.

However, this does not mean that the 3,300 layoffs announced correspond to partner drivers. The disclosed cuts affect Uber’s corporate workforce.

In Brazil, the platform continues to implement changes in its relationship with drivers. Recently, CPG showed that the company began to test a subscription model for drivers in 12 Brazilian cities, replacing the traditional percentage fee with a fixed charge in certain situations. Understand the new model being tested by Uber with Brazilian drivers

Fully remote work also virtually disappears

The restructuring will even impact how employees work.

Uber aims to limit completely remote roles to approximately 1% of its employees.

The predominant policy will continue to require physical presence in the office for three days a week, reinforcing a trend among major tech companies to reduce fully remote positions after the expansion of this model during the pandemic.

The company is also expected to concentrate a larger portion of its workers in strategic centers.

These changes indicate that the announced cuts go beyond merely eliminating thousands of positions. The company is redesigning its own structure to operate with fewer administrative levels and more resources directed toward technologies it deems crucial for the coming years.

Largest cut at Uber since 2020

The magnitude of this decision becomes even more evident when compared to the company’s recent history.

In May 2020, when cities were virtually paralyzed by Covid-19 and demand for transportation plummeted, Uber cut approximately 6,700 jobs, equivalent to nearly a quarter of its workforce at that time.

Since then, no cuts made by the company have reached the scale of the 3,300 layoffs announced now.

This situation also occurs amid a broader wave of reorganizations in the tech sector.

The report used as a source states that Layoffs.fyi had recorded over 123,000 layoffs across nearly 390 tech companies in 2026 up to the publication date.

CPG has been monitoring this transformation. A previously published survey showed how tech giants have been downsizing while directing resources towards artificial intelligence, automation, and technological infrastructure. See how layoffs have affected tech giants

However, there is an important difference in Uber’s case.

Uber says artificial intelligence is not responsible for the cuts

While artificial intelligence, automation, and cost-cutting are directly linked to the recent layoffs carried out by various companies, Dara Khosrowshahi refrained from attributing the job cuts at Uber to AI.

The company is also facing high costs associated with the use of these technologies, but presents the restructuring primarily as a way to simplify its structure and prepare the business for the next stage of autonomous transportation.

This distinction is noteworthy precisely because many companies have begun to use artificial intelligence as an explanation for workforce reductions.

A report published earlier by CPG highlighted a survey in which 59% of the surveyed companies admitted to using AI as an argument to justify layoffs, while only a much smaller fraction said they had completely replaced human roles with technology. Read the analysis on AI and layoffs published by CPG

In the case of Uber, the move seems to indicate an even deeper transformation.

The company that revolutionized transportation by connecting millions of drivers to an app now needs to figure out what its role will be in a world where some of these cars may operate without any drivers at all.

And the 3,300 job cuts announced this week could be one of the first visible signs of this new phase.

External source: Reuters, via CNN Brasil. Check out the report used as a reference

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