As artificial intelligence continues to reshape workplaces across the technology sector, any announcement of job cuts inevitably raises questions about automation. That was the backdrop this week as Uber confirmed it is cutting 23% of employees in its People and Places division, the department responsible for human resources, recruitment, and workplace operations.
The company has been quick to address speculation. Uber says the layoffs are not linked to artificial intelligence and are instead part of a broader effort to simplify its internal structure. The move affects HR and recruitment teams across the organisation. While Uber has not disclosed the exact number of employees impacted, a company spokesperson told CNBC that the reduction represents well under 1% of the company's global workforce of approximately 34,000 employees.
Restructuring Follows Leadership Changes
The layoffs come shortly after Jill Hazelbaker was appointed president and chief corporate affairs officer in a newly created leadership position.
In a memo sent to employees, Hazelbaker said the changes are designed to create a more connected, modern, and operationally efficient organisation. According to Hazelbaker, parts of the People and Places division had become increasingly complex over time. She said some teams had overlapping responsibilities, unclear ownership structures, and were operating too far from the business units they were intended to support.
The restructuring aims to remove those overlaps and improve coordination between teams and business functions. The changes mark one of the most significant reorganisations within Uber's people operations department in recent years.
CEO Says Changes Are Needed for Future Growth
Uber Chief Executive Dara Khosrowshahi also addressed employees following the announcement. In a separate memo, he said the restructuring was necessary to improve the effectiveness of the People team and position the company for future opportunities.
'These changes are necessary to maximise the effectiveness of the People team and the enormous potential ahead of us,' Khosrowshahi said. The company has presented the layoffs as an operational decision focused on organisational efficiency rather than a cost-cutting exercise driven by technology.
Uber Rejects Link Between Layoffs and AI
The announcement comes at a time when artificial intelligence has become a central factor in workforce discussions across the technology industry. Several major companies have cited AI-driven efficiencies when reducing headcount or slowing recruitment.
Uber, however, has stated that the latest job cuts are not connected to AI adoption. A company spokesperson said the restructuring within the People and Places division was unrelated to artificial intelligence and was instead focused on improving internal operations. That clarification is notable because Uber has increasingly integrated AI tools into various parts of its business.
AI Still Playing a Bigger Role Across the Company
Although Uber says AI did not cause the layoffs, the company continues to expand its use of artificial intelligence technologies. Last month, Khosrowshahi said employees were becoming more productive through the use of AI tools. He also indicated that those productivity gains were influencing hiring decisions across parts of the company.
At the same time, Uber executives have acknowledged the financial challenges associated with AI investment. Chief Operating Officer Andrew Macdonald recently said that productivity improvements generated by AI were not matching the level of spending on AI tokens and related services. The comments highlight the balancing act facing many technology companies as they invest heavily in artificial intelligence while seeking measurable returns.
Company Introduces Limits on AI Spending
The layoffs were announced only days after Uber confirmed new spending controls for employees using agentic AI tools. The company introduced tiered monthly spending limits, with a base allowance of $1,500 per month and higher limits available depending on team requirements and approved usage.
According to reports, Uber's technology division had already exhausted its planned 2026 AI budget within the first four months of the year. The development reflects the rapid growth of AI-related spending across the business.
Part of a Wider Industry Trend
Uber joins a growing list of technology companies that have announced workforce reductions amid efforts to improve efficiency and streamline operations. However, unlike some firms that have openly linked staffing decisions to artificial intelligence, Uber has maintained that this restructuring is driven by organisational changes rather than automation.
For now, the company's message remains clear. The layoffs are intended to simplify the People and Places division, reduce complexity, and improve how teams support the wider business. While AI continues to play an expanding role within Uber's operations, company leaders insist it was not the reason behind the latest round of job cuts.
