Uber Technologies NYSE:UBER stock is in focus after Bloomberg reported the ride-hailing company cut about 10% of jobs in its customer service operations as part of a restructuring aimed at simplifying the business and expanding the use of artificial intelligence.
Uber notified employees in its community operations organization of the changes on July 22. The company said the restructuring is intended to streamline operations, encourage greater in-person collaboration, and support broader deployment of AI across the business.
In a memo to employees, Vice President of Global Community Operations Megha Yethatika said the organization's structure had become too complex and fragmented. She said Uber has made progress adopting AI but needs a more efficient operating model to fully scale the technology. Employees on the affected team who had been working remotely were also asked to relocate to one of the company's hub offices under its return-to-office policy.
The latest move marks Uber's second workforce reduction in less than two months and its first round of layoffs directly linked to AI-driven efficiencies. In June, the company cut 23% of its people division, while in May it said it would slow hiring as it increased investment in artificial intelligence.