Uber's human resources division, encompassing personnel and recruitment functions, is undergoing a workforce reduction affecting 23% of its staff.
Chief Executive Dara Khosrowshahi stated in an internal memo that the associated reforms are essential.
While Uber has not attributed the layoffs directly to artificial intelligence, the company confirmed this week that it has implemented tiered usage budgets for autonomous AI tools utilized by employees.
These job cuts are concentrated within the recruitment and human resources sectors. Uber has not disclosed the exact number of positions eliminated, but a company spokesperson indicated the reduction accounts for significantly less than 1% of its total workforce of 34,000 employees.
In an organizational streamlining effort led by new President Jill Hazelbaker, Uber's human resources department has cut 23% of its roles, impacting employees across the full spectrum of recruitment and personnel functions.
In a memo on the company's internal network, CEO Dara Khosrowshahi wrote, "To maximize the effectiveness of our people team and unlock the company's future growth potential, this organizational adjustment is essential."
Hazelbaker, who was promoted to President and Chief Business Affairs Officer last month, stated in an internal letter to the affected teams that the layoffs aim to build "a more collaborative, modern, and operationally efficient organization."
She added that certain business segments had become bloated and fragmented, with overlapping roles, unclear responsibilities, and a significant disconnect from frontline operations and partners.
As an increasing number of companies initiate downsizing and layoffs, many citing AI-driven automation and efficiency gains as justification, Uber is now joining this trend.
Although the ride-hailing and food delivery giant has not directly blamed the staff reductions on artificial intelligence, it officially confirmed this week that it has instituted a tiered payment system for employee use of autonomous AI tools, with a base monthly cost of $1,500 and escalating fees for higher tiers.
According to a prior report by The Information, Uber's head of technology had revealed that the company exhausted its entire annual AI budget for 2026 in just four months.
An Uber spokesperson explained in an email that the standard constitutes a flexible usage allowance for autonomous intelligence and programming tools, with budgets assessed separately for different tools.
The spokesperson stated, "We have had tiered budget controls in place for certain autonomous AI tools for several months."
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