Uber Technologies (NYSE:UBER) shares rose 2.4% on Wednesday morning following a Bloomberg report that the company plans to eliminate approximately 3,300 positions, representing about 10% of its global workforce, as part of an organizational restructuring.
The changes are intended to reduce management layers and simplify the company’s organizational structure, according to the report.
A company spokesperson said the restructuring will reduce the number of managers at Uber by approximately 20%, with some managers moving into individual contributor positions.
Uber Targets Management Layers and Organizational Structure
In an email obtained by Bloomberg News, Chief Executive Officer Dara Khosrowshahi said Uber’s growth had resulted in “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.”
As part of the restructuring, Uber plans to reduce by nearly half the number of teams consisting of only one or two employees.
The company will also decrease the number of employees working more than seven organizational layers below the CEO.
Uber is making changes across its core engineering, science and delivery organizations. These include consolidating three separate operations teams covering restaurants, retail and the company’s white-label delivery service.
Uber Tightens Remote Work Policy
Uber is also changing its approach to remote working as part of the restructuring.
Going forward, the company plans to limit fully remote employees to approximately 1% of its workforce, according to the supplied information.
The changes form part of the broader effort to modify Uber’s organizational structure following the expansion of its operations.
Savings Expected to Be Reinvested in Business Priorities
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.”
Uber plans to direct additional investment toward drivers, couriers and merchants, as well as improvements to its core ride-sharing and delivery operations and the development of autonomous vehicle technology.
The company has not provided the amount of expected cost savings or detailed financial effects of the restructuring in the supplied information.
Uber shares were up 2.4% following the Bloomberg report. While the share-price increase occurred alongside the restructuring report, the extent to which the reported job cuts or other factors contributed to the market move cannot be established from the supplied information.
Uber Technologies stock price
