Uber To Reportedly Cut 10% Of Global Workforce To Reduce Management Layers

(RTTNews) - Uber Technologies, Inc. (UBER) is planning to lay off about 10 percent of its global headcount, or around 3,300 people, as part of its strategic efforts to reduce management layers, according to multiple media reports.

In a note to employees, Chief Executive Officer Dara Khosrowshahi stated that the decision is part of a restructuring exercise to reduce the number of managers by 20 percent and let go of personnel who are "more than seven layers down from the CEO," as per Bloomberg.

Khosrowshahi added that the recent growth in the company has created "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."

The company intends to combine its engineering, science and delivery divisions, while consolidating its three operations teams for restaurants, retail and its white-label delivery service. Also, it will implement stricter remote work policies, allowing less than 1 percent of its staff to work remotely, the reports stated.

"A leaner organization will mean clearer ownership, ?faster decisions, and more time spent building rather than coordinating. It will also generate savings that we intend to reinvest in ?growth, innovation, and the capabilities that will matter most over the coming years," Khosrowshahi said.

The company intends to use these savings to further invest in its core ride-sharing and delivery businesses and autonomous vehicle development.

UBER was trading at $76.21, up 1.30 percent on the NYSE.