Ride-hailing giant Uber has announced plans to cut about 3,300 jobs worldwide, or roughly 10 percent of its global workforce, as part of a major restructuring that could have implications for its operations in Nigeria and other markets.
The company said Wednesday that the job cuts were part of a plan to simplify its corporate structure, reduce management layers and redirect resources towards its core ride-hailing, delivery and autonomous vehicle businesses.
Chief executive Dara Khosrowshahi said Uber’s rapid expansion over the past five years had created excessive complexity within the company, including additional management layers, fragmented responsibilities and slower decision-making.
“Today, we’re making a number of significant organisational changes across Uber,” Khosrowshahi said in a message to employees.
“We are removing layers, simplifying team structures, refining our global location strategy, and focusing our people and investments against the biggest opportunities ahead of us,” he said.
Uber said employees whose positions were affected had already been notified, except in countries where labour regulations require formal procedures before dismissals can take effect.
The restructuring will reduce the number of employees who are seven or more layers below the chief executive by 20 percent, while the number of small teams with only one or two members will be nearly halved.
The company is also combining its delivery operations across restaurants, retail and its Direct white-label delivery business. Some engineering and science teams will also be merged.
Uber’s global workforce is expected to fall to just under 30,000 after the restructuring, marking its largest round of job cuts since the company eliminated about 6,700 positions during the Covid-19 pandemic in 2020.
The development has drawn attention in Nigeria, where Uber remains a major player in the country’s growing e-hailing industry.
The company’s platform operates in several Nigerian cities, including Lagos, Abuja, Ibadan, Port Harcourt, Kano, Enugu and Uyo.
However, Uber has not said how many, if any, Nigeria-based corporate employees will be affected by the global restructuring. There is also no indication that the company’s ride-hailing services or operations in Nigeria will be discontinued.
The distinction is significant because the 3,300 positions being eliminated are part of Uber’s global corporate workforce, while drivers using the company’s platform operate under a different arrangement.
The restructuring comes as Uber continues to navigate challenges in Nigeria’s transport sector, including discussions surrounding the operations of e-hailing companies at airports.
The Federal Airports Authority of Nigeria has previously said it was working with relevant stakeholders to establish a framework for the operations of ride-hailing services at the country’s airports.
Uber said savings from the restructuring would be reinvested in growth, innovation and its future mobility ambitions, particularly autonomous vehicles.
The company plans to invest more than $10 billion in expanding its robotaxi operations and aims to offer the service in at least 15 cities this year.
Shares in Uber rose by about two percent following news of the restructuring.
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