Uber plans 10% workforce cut to trim management layers

Sept 2 (Reuters) - Uber Technologies said on Wednesday it will cut about 3,300 jobs, or roughly 10% of its workforce, in a restructuring aimed at removing management layers, consolidating teams and reducing costs.

The cuts follow a difficult year for Uber shares, which have fallen nearly 8% and underperformed the broader S&P 500, amid investor concerns that autonomous ride-hailing companies such as Waymo could threaten Uber's dominant North American market share.

The company had about 34,000 employees globally at the end of last year, according to its annual report.

The layoffs would be Uber's largest since May 2020, when the company cut about 6,700 jobs, or nearly a quarter of its workforce, as pandemic restrictions crushed demand for ride-hailing services.

Echoing a broader push across the tech industry to stay nimble, CEO Dara Khosrowshahi said the cuts would reduce organizational complexity that had slowed down Uber's decision-making and created roles focused on co-ordination.

But unlike several tech executives, he did not blame the cuts on AI. He also said Uber would combine some teams and concentrate most of its staff presence around key hubs as part of the move.

Uber said it reduced the number of employees positioned seven or more reporting layers below the CEO by 20% and cut the number of "micro-teams", teams with only one or two direct reports, by nearly half.

The company will concentrate global teams in New York and San Francisco, require most remote workers to relocate and limit fully remote roles to about 1% of staff, while maintaining its three-day office policy.

Its shares rose about 2% in premarket trading following the announcement, which was first reported by Bloomberg News.

(Reporting by Akash Sriram and Aditya Soni in Bengaluru; Editing by Diti Pujara and Devika Syamnath)