Uber to lay off about 10% of global workforce

Uber will lay off around 10 percent of its workforce worldwide as part of “significant organizational changes,” chief executive Dara Khosrowshahi told employees in a message released Wednesday.

“Today, we’re making a number of significant organizational changes across Uber,” Khosrowshahi said. “As a result, we will be reducing the size of our team by about 10 percent.”

Uber has roughly 34,000 employees and operates in more than 70 countries, according to a recent SEC filing. The company said the layoffs are intended to make the platform “simpler and faster” and reduce coordination delays.

“A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating,” Khosrowshahi’s message said.

Wedbush Securities said it expected Uber to save around $1.75 billion through the layoffs and invest the money in growth areas. It said the restructuring aimed to reduce managerial layers and cut the number of employees sitting more than seven layers from the chief executive.

Khosrowshahi said Uber’s delivery business would reorganize restaurant, retail and direct delivery units into global, regional and country-level teams. He also said the company would concentrate jobs in key hubs, with global teams mainly in New York and San Francisco, and that only around one percent of employees would be allowed to work remotely going forward.

Uber said Wednesday it was also shutting down its business in Nigeria and Uganda, after leaving Tanzania earlier this year.

US-listed Uber shares were up more than 2.5% in midday trading.