Uber is in the news once again, this time for joining its tech brethren by turning to layoffs. The Uber job cuts have hit the People and Places Division at the organization, affecting workers in charge of workforce management. Bloomberg reported that workers in human resources, recruitment, workplace facilities, and culture teams have been affected by the cuts. The restructuring at Uber follows the promotion of Jill Hazelbaker to the role of President and Chief Corporate Affairs Officer merely weeks ago, but there are no reports on whether the layoffs were already under consideration or the result of the leadership changes within the organization.
Uber’s decision to target its HR and People Division in the layoffs is also noteworthy, as there have been growing conversations surrounding the elimination of such departments to be replaced with something more modernized and suited to the changing direction of the organization.
The layoffs at Uber will affect less than 1% of its overall workforce, but the implications of cutting jobs in people management remain to be seen. (Image: Freepik)
Uber Layoffs Come For The People Division as the Organization Sets Its Sights On Maximizing Their Effectiveness
Initial reporting suggests that the layoffs at Uber will affect 23% of its People Division, but overall, will eliminate well below 1% of its global workforce of 34,000 workers. Reports suggest that senior-level positions will be targeted by these workforce cuts, but no exact names or headcount details have been shared publicly. Headcount reductions aren’t the only changes faced by the division. Bloomberg noted that HR workers who were previously approved for remote work will now have to return to in-person work three days a week. This follows a mandate that was set in place last June, but will now be enforced for a greater share of workers.
A detailed explanation has not been provided for Uber’s decision to turn to layoffs or target the People Division in particular, however, the CEO did mention a desire for greater effectiveness. In an internal memo, CEO Dara Khosrowshahi stated that “changes are necessary to maximize the effectiveness of the People team and the enormous potential ahead of us.”
Hazelbaker similarly expressed a desire to improve existing structural problems in operation, stating that the business had grown “too complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support.” Changes were deemed necessary to set a course towards a “more connected, modern, operationally excellent organization.“
Are Uber’s Layoffs AI-Related?
Uber has denied any indication that the job cuts are a part of its AI advancement strategy or linked to cost cuts in favor of the tech. Despite this, the rumors persist. Earlier this year, the company revealed that it had blown through its 2026 AI budget in just four months and added that it would slow down hiring due to its internal adoption of AI. More recently, the company announced caps on employee AI usage, setting a $1,500 limit per employee per AI tool to ensure that the expenses remained within reasonable bounds.
The division-restricted nature of the Uber layoffs is likely a result of the company’s desire to optimize the management of its workforce and internal HR operations, but we do not have details on just how this will be achieved following the restructuring. The organization appears to have open positions and job listings still available, which suggests that it hasn’t given up on hiring entirely. We remain curious to learn more about how these changes affect the hiring scale and capacity of the organization, with fewer hands to oversee such procedures.
Changes to HR Operations Appear to Be An Increasing Concern for Leaders
The layoffs within the HR team at Uber don’t come with an explanation of exactly how the division will operate henceforth, but more and more businesses appear to be looking to rewrite how their people management teams operate. For some companies, this has meant firing the entire HR department for bringing up too many problems and replacing it with a new department that performs a similar function.
For other organizations, collaborating with HR to determine how best the division can meet the needs of the team has been sufficient. In the next year, HR teams will likely have to evolve and redefine their operations, particularly with trends that suggest a merging of IT and HR as more AI agents and tech tools make their way into the workplace. Gearing up for these changes is a top HR priority for 2026.
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