People Division Slashed by Nearly a Quarter

Uber is implementing a strategic workforce reduction, cutting 23% of its personnel within the People division. This move is spearheaded by the company’s newly appointed president, Jill Hazelbaker, and aims to streamline operations and enhance overall efficiency. CEO Dara Khosrowshahi articulated in a recent internal memo that these adjustments are crucial for “maximizing the effectiveness of the People team and the enormous potential ahead of us.”

The affected departments include recruitment and human resources. While Uber has not disclosed the exact number of employees impacted, a company spokesperson indicated that the layoffs represent “well under 1%” of its global workforce of approximately 34,000 individuals. Hazelbaker, who recently assumed the role of President and Chief Corporate Affairs Officer, emphasized in a communication to those affected that the goal is to foster a “more connected, modern, operationally excellent organization.” She further elaborated that certain segments had become “complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support.”

This organizational recalibration at Uber occurs amidst a broader trend across the tech landscape, where numerous companies are reassessing their headcount, often citing the transformative power of artificial intelligence in automating tasks and scaling operations. While Uber did not directly attribute these specific cuts to AI implementation, the company has been actively exploring AI’s capabilities. This week, Uber confirmed a tiered system for employee access to agentic AI tools, with a base tier priced at $1,500 per month, subject to upward adjustments.

The strategic emphasis on AI integration is further underscored by earlier reports suggesting that Uber’s Chief Technology Officer had indicated the company had already surpassed its 2026 AI budget within the first four months of the year. A spokesperson clarified to CNBC that these “spend tiers” are specifically for agentic and coding-related AI technologies, with budgets allocated on a per-tool basis. “We have had spend tiers on some agentic AI tools for several months,” the spokesperson stated.

This strategic maneuver by Uber reflects a critical juncture for established technology firms as they navigate the rapid evolution of AI. The company’s focus on optimizing its internal structure, particularly within its People division, suggests a proactive approach to harnessing technological advancements for greater operational agility and long-term growth. The investment in AI, coupled with these organizational adjustments, positions Uber to potentially redefine efficiency standards within the competitive ridesharing and delivery sectors. The ability to effectively integrate AI-driven solutions while maintaining a focused and streamlined organizational structure will be a key determinant of Uber’s future success and its capacity to innovate and lead in an increasingly dynamic market.