Uber has announced a number of job cuts in its People and Places division.

In a memo to employees, Uber CEO Dara Khosrowshahi said the changes were needed to help the company make the most of its opportunities going forward. “The changes are necessary to maximise the effectiveness of the People team and the enormous potential ahead of us.” While Uber did not reveal the exact number of employees affected, a company spokesperson told CNBC that the layoffs account for “well under 1%” of Uber’s global workforce of around 34,000 employees. Jill Hazelbaker says organisation had become too complicated Hazelbaker, who was promoted to president and chief corporate affairs officer last month, explained the reason behind the cuts in a note sent to affected teams. According to her, the goal is to create a “more connected, modern, operationally excellent organization.” She said some parts of the People division had become difficult to manage over time. “Some segments have become complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support.” Thus, the restructuring is aimed at reducing those overlaps and bringing teams closer to the parts of the business they work with. Uber says AI was not the reason for layoffs The announcement comes at a time when several major companies have linked job cuts to the growing use of artificial intelligence. Uber, however, said that was not the case here. However, a company spokesperson said the layoffs in the People and Places division were not connected to AI. Uber CEO Dara Khosrowshahi also addressed employees in a separate memo, saying the changes were necessary to make the department more effective going forward. “These changes are necessary to maximize the effectiveness of the People team and the enormous potential ahead of us.” Although the layoffs were not caused by artificial intelligence, Uber is actively using AI tools across the company and is still figuring out how they fit into its business. Last month, Khosrowshahi said Uber is hiring fewer employees because existing workers are becoming more productive with the help of AI. At the same time, Uber Chief Operating Officer Andrew Macdonald said the productivity gains from AI are not matching the amount of money the company is spending on AI tokens. Uber joins a growing number of companies that have announced layoffs in recent months. Many businesses have pointed to artificial intelligence as a way to automate work and improve efficiency. Uber has been closely watching AI spending The layoffs come just days after Uber confirmed that it had introduced spending limits for employees using agentic AI tools. The company said the basic spending tier is set at $1,500 per month, with higher limits available depending on the tool and team requirements. Earlier, Uber’s technology chief had reportedly said that the company burned through its planned 2026 AI budget in just four months, according to The Information. Bloomberg was the first to report the layoffs.

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