Uber layoffs and Africa exits: 3300 jobs cut as company pulls out of Nigeria, Uganda

Washington: Ride-hailing giant Uber will lay off approximately 10 per cent of its workforce as part of "significant organisational changes," Chief Executive Officer Dara Khosrowshahi announced in a memo to staff released on Wednesday.

"Today, we're making a number of significant organisational changes across Uber," Khosrowshahi stated. "As a result, we will be reducing the size of our team by about 10 per cent."

Uber employs roughly 34,000 individuals globally across more than 70 countries, according to a recent filing with the US Securities and Exchange Commission (SEC).

The firm noted the job cuts are intended to make its operations "simpler and faster" while streamlining coordination across its extensive global footprint.

"A leaner organisation will mean clearer ownership, faster decisions, and more time spent building rather than coordinating," the note added.

Established in 2009, Uber transformed urban transport by disrupting traditional taxi and private car markets, enabling individuals to use personal vehicles to provide rides.

The company has since broadened its reach significantly into delivery services, focusing on food and retail items alongside short-distance courier offerings.

Uber drivers are remunerated under varying models internationally, with many raising concerns regarding low pay and vehicle maintenance costs.

The vast majority of Uber drivers are not classified as formal employees, operating instead as independent contractors depending on local regulations.

While Khosrowshahi's message emphasised operational efficiencies, the enterprise has also ceased operations in several markets altogether.

On Wednesday, Uber confirmed the shutdown of its businesses in Nigeria and Uganda, following its withdrawal from Tanzania earlier this year.

In an analyst note, Wedbush Securities estimated the workforce reduction would generate around 1.75 billion US dollars in savings, which the firm expects will be redirected into growth initiatives.

"Uber is aiming to create a leaner organisation with fewer managerial layers and move faster in investing into growth," Wedbush noted.

The investment firm added that structural changes aim to trim smaller internal teams and ensure fewer employees sit more than seven management tiers beneath the CEO.

A central component of the restructuring centres on Uber's delivery division, which Khosrowshahi indicated would merge restaurant, retail, and direct delivery operations into consolidated global, regional, and national teams.

He further noted that jobs will be concentrated within core hubs, with global units located primarily in New York and San Francisco.

His memo specified that only about 1 per cent of the workforce will be permitted to work remotely moving forward.

US-listed shares of Uber rose more than 2.5 per cent during midday trading following the announcement.

AFP