Uber Cuts 10% of Jobs as It Expands Robotaxis and Drones

Uber will cut 10% of its roughly 34,000 employees worldwide in its largest round of layoffs since the pandemic. The cuts will primarily affect middle management, with one in five management positions set to go.

The company will also tighten its work-from-home policy. Most employees will be allowed to work remotely for no more than two days a week, while only about 1% will receive a full exemption from office attendance.

The cuts are expected to free up about $825m, according to media reports, with much of the money set to go toward automation in ride-hailing and delivery services.

CEO Dara Khosrowshahi is investing more than $10bn in robotaxis. Uber is working with more than 30 companies, including Waymo, Lucid, Nuro and Rivian, and aims to offer autonomous rides in various forms in 15 US cities by the end of the year. It also plans to launch its own robotaxi service in the San Francisco Bay Area.

Uber Eats is also turning to automation. Zipline drones are expected to begin delivering food and groceries in the Bay Area within months, with the company hoping to cut costs, speed up deliveries and reach more customers in rural areas.

Uber is also seeking to develop into a super app modeled on Chinese platforms. Since April, users have been able to book hotel stays through the Uber app as part of a partnership with Expedia.

(NZZ, bak)