Uber reportedly announces major workforce restructuring: What to know

Uber Technologies is reportedly planning to cut about 10% of its workforce on Wednesday- a significant move aimed at reducing management layers, reorganizing the company's structure to boost efficiency, lower expenses and accelerating decision-making.

The downsizing after a challenging year for Uber whose shares have fallen nearly 8% and missed the mark S&P 500 amid fears that on-demand services such as Waymo could threaten its dominant North American market share.

According to its annual report, the company had about 34,000 international staff count at the close of the previous year. These layoffs would be Uber's largest since May 2020 when the company reduced staff by about 6,700 jobs as pandemic restrictions emphasize suppressed demand.

CEO Dara Khosrowshahi said the reduction in streamline operations slowed down Uber’s overseas daily processes and effected cross-functional team synchronization.

The company said it reduced management layers or more reporting below the CEO by 20% and lowered the number of micro-teams with few direct reports.

In light of the current announcement, the company will cluster global teams in New York and San Francisco, requiring remote workers to relocate and restricting fully remote roles to about 1% of staff while retaining its three-day office policy.