Uber layoffs 2026 reason explained : Uber is cutting roles in its People and Places division as part of an internal reorganization, but the company has clarified that the decision is not related to artificial intelligence.
Uber Lays Off Nearly 23% of People Team
The cuts affect teams responsible for human resources and recruitment. A company spokesperson said the reduction accounts for about 23% of that division, but still represents less than 1% of Uber’s total global workforce of 34,000 employees, as per a report.
Why Uber Is Restructuring Its HR and Recruitment Teams
The layoffs come shortly after Uber appointed Jill Hazelbaker as chief corporate affairs officer and president in a newly created leadership role.
In a memo to employees, Hazelbaker explained that the layoffs are to create a “more connected, modern, operationally excellent organization,” as quoted by CNBC.
She also noted that parts of the People team had become “complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support,” as quoted in the report.
Uber CEO Dara Khosrowshahi Explains the Job Cuts Decision
CEO Dara Khosrowshahi said in a separate memo that the “changes are necessary to maximize the effectiveness of the People team and the enormous potential ahead of us,” as quoted by CNBC.
Uber emphasized that the restructuring is focused on improving internal operations and alignment within the company.
Uber Says AI Is Not the Reason Behind the Layoffs
While many companies have recently cited artificial intelligence as a reason for workforce reductions, Uber said this round of layoffs is not driven by AI.
However, the company continues to use AI across its operations.
Khosrowshahi recently said employees are using AI tools to improve productivity, which has influenced hiring patterns. COO Andrew Macdonald also noted that productivity gains from AI are not proportional to spending on AI tokens, as per a Business Insider report.
Uber Introduces Spending Limits on AI Tools
Uber has also placed tiered spending caps on employee use of agentic AI tools.
The base limit is set at $1,500 per month, with higher tiers depending on usage. The company described these as “soft limits” applied to select tools, as per the CNBC report.
Uber also acknowledged that its tech division exceeded its 2026 AI budget within just four months, highlighting rapid growth in internal AI usage costs.
FAQs
Why is Uber laying off employees in its People team?Uber says it is restructuring to reduce complexity and improve internal efficiency.
Is Uber cutting jobs because of AI?
No, Uber said the layoffs are not driven by AI.
