New Delhi, July 23: Ride-hailing giant Uber Technologies has reduced its customer service staff by approximately 10% as part of an initiative to enhance efficiency through artificial intelligence (AI) and strengthen its organizational structure.
According to several reports, this latest round of layoffs occurred within Uber’s Community Operations division, which is responsible for customer support.
The reports further indicate that the company has instructed remote employees in this division to relocate to designated hub offices as part of its broader return-to-office strategy.
This restructuring comes at a time when Uber is focusing on streamlining its internal processes and expanding the use of AI in its operations.
An internal message from the company revealed that the existing organizational structure had become fragmented, making it challenging to fully leverage next-generation AI technologies.
This development is significant as it marks the first time Uber has directly linked employee layoffs to its AI strategy.
In June, the company had already eliminated about 23% of positions in its People division, affecting less than 1% of its global workforce of approximately 34,000 employees.
Uber had previously indicated that the widespread use of AI within the company would slow down the pace of new hiring.
However, the company is still recruiting for over 500 open positions, including engineering roles related to autonomous mobility and robotaxi programs.
This latest round of layoffs at Uber coincides with ongoing job cuts across the global technology industry.
Recent reports indicate that over 100,000 tech jobs have been eliminated worldwide in the first five months of 2026 alone, with nearly 28,900 layoffs occurring in May. According to data from layoffs.fyi, a total of 116,739 tech employees have lost their jobs globally so far.
The report states that due to a focus on cost optimization, restructuring, and increased use of AI, several major tech companies, including Uber, Meta, Cloudflare, Intuit, PayPal, Cisco, Quora, and Coinbase, have also announced reductions in their workforce.
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