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Uber Lays Off 3,300 Employees to Focus on Replacing Drivers It Spent Years Explaining Were Not Employees

Uber Lays Off 3,300 Employees to Focus on Replacing Drivers It Spent Years Explaining Were Not Employees

SAN FRANCISCO — Uber announced plans to eliminate roughly 3,300 jobs, or 10% of its workforce, as the company prepares to invest more than $10 billion in autonomous vehicles capable of eventually eliminating an entirely different category of people who work for Uber but whom Uber has historically preferred not to call employees.

CEO Dara Khosrowshahi said the restructuring will flatten management layers, accelerate decision-making and redirect resources toward technologies including robotaxis.

The move represents the latest phase of Uber’s decades-long effort to determine the absolute minimum number of human beings required to operate Uber.

“For years, the company successfully reduced labor costs by explaining that drivers were independent contractors,” said transportation analyst Gregory Haines. “Autonomous vehicles improve upon that model by making them independent of Uber entirely.”

Uber has spent billions positioning itself as a marketplace for driverless rides as Waymo, Tesla and other competitors threaten its lucrative position between passengers and the vehicles transporting them.

The company stressed that the layoffs are intended to make Uber leaner and more efficient, allowing remaining employees to spend less time coordinating with other employees who will no longer be there.

Executives declined to say whether management’s ultimate goal is an Uber consisting entirely of an app collecting 30% from cars that own themselves.


Inspired by:

Reuters - "Uber to lay off 10% of staff in biggest cuts since COVID" (September 2, 2026)

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