Uber has announced significant changes to its human resources department, reducing its HR and people-operations workforce by 23%. This decision, while impactful, represents less than one percent of the company's global workforce of 34,000 employees.
Restructuring Aims for Greater Efficiency
The restructuring initiative is being spearheaded by Jill Hazelbaker, Uber's recently appointed president and chief corporate affairs officer. In an internal memo, Uber CEO Dara Khosrowshahi underscored the necessity of these changes, stating they are crucial to "maximise the effectiveness of the People team and the enormous potential ahead of us."
Hazelbaker further elaborated on the rationale behind the layoffs, explaining that the move will help Uber build a "more connected, modern, operationally excellent organisation." She noted that the People team had grown "complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support."
AI Not a Direct Cause, But a Context
Despite the ongoing trend of artificial intelligence influencing workforce changes across the tech sector, Uber explicitly stated that these particular layoffs are not directly driven by AI-related restructuring. However, the company has been actively integrating AI into its operations and recently implemented spending limits for employees utilizing agentic AI tools and coding assistants, capping expenses at $1,500 per month. These limits are described as guidelines, allowing employees to exceed them with proper approval.
Uber also revealed that its technology unit rapidly depleted its 2026 AI budget within just four months due to escalating AI-related expenditures, indicating a swift adoption of AI within various teams. This context highlights Uber's broader strategic focus on technological advancement, even as it addresses organizational complexities within its HR functions.