Uber stock gains 2% as tech giant cuts 3,300 jobs in major restructuring

Investing.com -- Uber Technologies (NYSE:UBER) shares rose 2.4% Wednesday morning following a Bloomberg report that the company plans to cut approximately 3,300 jobs, representing 10% of its global workforce, as part of a restructuring effort to reduce management layers.

The job cuts will reduce the number of managers at Uber by 20%, with some being reassigned to individual contributor roles, according to a company spokesperson. The restructuring also targets organizational complexity that has accumulated as the company has grown.

In an email obtained by Bloomberg News, Chief Executive Officer Dara Khosrowshahi stated that Uber's recent growth has created "more layers, more coordination, more fragmented ownership, and in some cases structures that made sense when businesses were smaller but no longer serve us well at our current scale."

The restructuring will reduce by nearly half the number of teams with only one or two members and decrease the number of employees positioned more than seven layers below the CEO. The company is also streamlining its core engineering, science and delivery groups, including consolidating its three operations teams for restaurants, retail and its white-label delivery service.

As part of the changes, Uber is implementing stricter remote work policies, limiting remote employees to approximately 1% of its workforce going forward.

Khosrowshahi said the restructuring will "generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years." The company plans to direct additional investments toward drivers, couriers and merchants, as well as upgrades to its core ride-sharing and delivery businesses and autonomous vehicle development.