Uber cuts 23% of people team amid restructuring

Uber is reducing its people division by 23%, affecting employees in human resources and recruitment as the rideshare and food delivery company restructures the function.

The company has not directly attributed the cuts to artificial intelligence. Uber has, however, confirmed that it uses spending tiers for some agentic AI tools used by employees.

People division restructuring

Chief executive Dara Khosrowshahi said in a memo that the changes were needed to improve the People team’s effectiveness and support the company’s future opportunities.

The restructuring is being led by Jill Hazelbaker, who was promoted to president and chief corporate affairs officer last month. In a note to affected teams, Hazelbaker said the aim was to create a more connected, modern and operationally effective organisation.

She said parts of the division had become complex and fragmented, with overlapping duties, uncertain ownership and teams operating too far from the businesses and partners they support.

Uber did not disclose the number of employees affected. A spokesperson said the reductions represent well under 1% of its 34,000 employees.

The structured event information in the source packet lists 7820 announced job cuts, while the reported source says Uber did not disclose a number and describes the affected group as well under 1% of its 34,000 employees.

AI tools not cited as cause

Uber did not say AI caused the People team reductions. The company confirmed during the same week that employee access to agentic tools is governed by tiered budgets.

Its base tier is $1,500 per month, with higher limits available. A spokesperson described the limits as soft limits, focused on agentic and coding technology, with budgets set by tool.

Uber’s tech chief had previously said the company exceeded its 2026 AI budget within four months, according to reporting referenced by CNBC.

The People division changes come as other companies reduce headcount while citing AI-driven automation and efficiency. Uber’s stated rationale, however, centred on restructuring the division and addressing operational complexity rather than an explicit link to AI.

Scope of the cuts

The affected employees work in recruitment and human resources. Uber’s public comments place the reduction at 23% of the people team, rather than 23% of its overall workforce.

With Uber reporting 34,000 employees and saying the affected group is well under 1% of that total, the announced restructuring is limited in scope relative to the company’s full workforce. The company has not provided a separate figure for the number of people division employees affected.

Sources

• Uber layoffs: People division cut by nearly a quarter