Uber Cuts 3,300 Jobs as Robotaxis Reshape Ride-Hailing, Exits Nigeria and Uganda

Uber Technologies is cutting about 3,300 jobs, or roughly 10% of its global workforce, in its largest round of layoffs since the COVID-19 pandemic as the ride-hailing company restructures its operations, reduces management layers and prepares for a transportation market being shaped by autonomous vehicles.

At the same time, Uber is winding down its operations in Nigeria and Uganda, effective Wednesday, September 2, in a move that further demonstrates the company's effort to concentrate resources on markets where it sees greater potential for scale and profitability.

The two developments come as Uber faces mounting competition from robotaxi operators, pressure in its food-delivery business and rising technology costs. The company is seeking to reduce organizational complexity while redirecting resources toward autonomous vehicles, artificial intelligence and other areas it considers strategically important.

Chief Executive Dara Khosrowshahi said in an internal message to employees that the restructuring would simplify Uber's organization and accelerate decision-making.

"A leaner organization will mean clearer ownership, faster decisions, and more time spent building rather than coordinating," Khosrowshahi said. "It will also generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years."

Unlike a number of technology companies that have attributed recent layoffs directly to artificial intelligence, Khosrowshahi did not cite AI as the principal reason for the job cuts. Instead, he pointed to management complexity that accumulated during a period of rapid expansion.

Uber plans to reduce the number of employees who are seven or more reporting layers below the CEO by 20%, while nearly halving the number of teams with only one or two direct reports. Some teams will be combined, while employees will be concentrated more heavily around key company hubs. The company will also sharply reduce fully remote positions to about 1% of its workforce, while retaining its existing policy requiring employees to work from offices three days a week.

The layoffs, first reported by Bloomberg News, represent Uber's biggest workforce reduction since May 2020, when the collapse in transportation demand during the pandemic forced the company to eliminate about 6,700 positions, equivalent to nearly one-quarter of its workforce at the time.

Uber had about 34,000 employees globally at the end of last year, according to its annual report.

The restructuring comes as autonomous vehicles threaten to challenge one of Uber's most important economic advantages: its role as an intermediary connecting passengers with human drivers.

Uber currently works with Waymo, the largest U.S. robotaxi operator, whose autonomous vehicles are available through Uber's platform in Austin and Atlanta. Waymo is also expanding independently into additional markets, while Tesla is pushing aggressively into its own robotaxi ambitions.

The growing availability of driverless vehicles creates a strategic dilemma for Uber. Autonomous vehicles could substantially reduce the cost of providing rides by eliminating the human driver, potentially expanding the market for on-demand transportation. At the same time, robotaxi companies could bypass Uber altogether and establish direct relationships with passengers.

Uber is therefore attempting to position itself as the marketplace and technology platform through which autonomous vehicles reach consumers, rather than allowing robotaxi operators to displace its role entirely.

The company plans to invest more than $10 billion in autonomous vehicles over the coming years, supporting companies developing self-driving technology and seeking to make its platform a major distribution channel for driverless transportation.

"As AV tech and relationships grow and expand - there is a different type of employee needed to scale that business than one built around human drivers and all the cost to serve entailed with that, including management layers," said Adam Ballantyne, an analyst at Uber shareholder Cambiar Investors.

The implications extend beyond Uber's core ride-hailing operation. Uber Eats is also facing competition from DoorDash, Instacart and other delivery platforms, increasing the pressure on the company to achieve greater scale and efficiency in its delivery business.

Uber has responded partly through acquisitions, including its $14.8 billion purchase of Delivery Hero's food-delivery businesses, designed to strengthen its international delivery operations and competitive position.

The company is also dealing with rising expenditure on AI. Media reports have said Uber employees exhausted the company's entire 2026 AI budget within four months, illustrating the cost implications of rapidly deploying generative AI across a large organization.

Uber's shares rose nearly 2% following news of the restructuring, although the stock has fallen about 8% this year and has underperformed both the S&P 500 and rival Lyft amid concerns over competition and the changing economics of ride-hailing.

Nigeria and Uganda Exits

Alongside the global restructuring, Uber said it would discontinue operations in Nigeria and Uganda from September 2 following what it described as a "thorough review."

"After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026," the company said in a statement.

Uber said the decision applies only to the two markets and does not affect its other operations across Africa.

The Nigerian exit ends a 12-year presence in the country. Uber launched its service in Lagos in 2014 and subsequently became one of the most recognizable ride-hailing brands in Nigeria, competing with local and international mobility platforms. The company did not disclose how many employees, drivers or riders would be directly affected by the withdrawal.

Uber said its immediate priority was to support drivers, riders and local employees during the transition. It said affected employees would be contacted directly regarding arrangements applicable to them, while active drivers would receive "a token of our appreciation" as services are discontinued.

The company said it remains committed to Sub-Saharan Africa, describing the region as having "robust growth and long-term opportunity," while emphasizing that it is focusing investments on markets where it believes it can create the greatest value for drivers and riders at scale.

Uber for Business services in Nigeria and Uganda will also be discontinued. The company said it was engaging corporate customers and business partners directly to help them manage the transition.

Rider support will remain available for 21 days after the shutdown to address outstanding queries and other transition-related matters.

Uber also said customer personal information would continue to be handled under applicable data-protection and privacy requirements. The company said it would retain only information required by law, maintain appropriate security controls and continue responding to valid data requests.