Uber To Cut Thousands Of Jobs To Make The Company ‘Simpler And Faster.’ Its Stock Rose

Uber announced on Wednesday that it is set to cut about 10% of its workforce to make the company "simpler and faster."

In a message sent to company employees, CEO Dara Khosrowshahi said the move also seeks to "create more capacity to invest in our future."

Overall, the move will impact some 3,300 employees, considering that the company had some 34,000 employees at the end of last year.

Khosrowshahi said the company's strong growth has also brought "complexity," involving "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."

"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 added. The company's stock climbed more than 1.5% at 11:48 a.m. ET.

Several companies have announced mass layoffs throughout the year, including Meta and Oracle. On Wednesday, ADP noted that private companies added 38,000 jobs last month, down from 46,000 in July and below analysts' expectations of 47,000.

The figure represents the slowest pace of job creation since January. "Manufacturing, professional services, and information shed jobs. Education and health care, construction, and leisure and hospitality all showed solid hiring," it detailed.

ADP Chief Economist Nela Richardson said pay growth shows where hiring is taking place. "To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it's slowing, and for whom," she said.

"Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI's effects on jobs," Richardson added.