Uber cuts customer service by 10%, focuses on AI
Uber announced a 10% reduction in its customer service department as part of efforts to streamline its workforce and increase the use of artificial intelligence.
Ride-hailing company Uber announced on July 22 that it is cutting 10% of its customer service staff. The move is part of a broader initiative to simplify its workforce and embrace artificial intelligence (AI).
According to a company spokesperson, the layoffs are aimed at streamlining operations, strengthening in-person collaboration, and advancing the adoption of AI technologies. Remote workers have also been asked to relocate to company-designated offices, aligning with Uber's return-to-office policy.
In an internal memo, Megha Yethatika, Uber's global vice president of community operations, stated that the organization had become "too complex and siloed." She acknowledged progress in AI applications but emphasized the need for an efficient organizational structure to fully leverage AI's potential, noting that "cutting-edge technology cannot scale on fragmented processes."
The job cuts follow a previous reduction of approximately 23% in Uber's human resources department, which the company stated was unrelated to AI. These actions reflect a wider trend among tech companies seeking to optimize costs and structures while investing in new technologies.