Uber lays off 10% of staff, cuts management layers
Ride-sharing company Uber announced yesterday it is laying off 10% of its workforce, approximately 3,300 empl oyees, to speed up decision-making by flattening management structures.
Uber is reducing its workforce by 10%, equating to about 3,300 employees, CEO Dara Khosrowshahi announced yes terday in the company's largest job cuts since the pandem ic.
The restructuring aims to accelerate decision-making b y reducing management layers. Khosrowshahi stated that t he number of employees seven or more layers from the CEO has decreased by 20%, and the number of micro-teams with one or two direct reports has been nearly halved.
These changes reflect the ongoing trend of "Great Flatt ening" in the corporate world, where companies are reduc ing middle management layers. Tech giants like Meta, Amaz on, Google, and Microsoft have previously cut managerial roles, citing that flatter structures lead to faster oper ations.
The broader trend, partly fueled by artificial intell igence, has already significantly reshaped the workforce. The average number of direct reports per manager has inc reased, and a significant portion of employees report the ir organizations have reduced management tiers.
While the impact of reducing middle management is still being assessed across industries, Uber's CEO is betting t hat fewer layers and larger teams will enhance the compa ny's speed and efficiency.