Uber cuts 23% of HR and recruitment staff in People and Places overhaul

Uber has cut 23% of employees in its People and Places division, affecting teams across human resources and recruitment as part of a broader effort to simplify the function and bring it closer to business operations.

The restructuring was announced internally on Wednesday and comes weeks after Jill Hazelbaker was elevated to the role of President and Chief Corporate Affairs Officer. The division oversees key people functions including talent acquisition, employee experience and HR operations.

While the company did not disclose the exact number of jobs affected, an Uber spokesperson told CNBC that the reductions account for "well under 1%" of the company's global workforce of around 34,000 employees.

In a memo to staff, CEO Dara Khosrowshahi said the changes were designed to strengthen the effectiveness of the company's people organisation.

"The changes are necessary to maximise the effectiveness of the People team and the enormous potential ahead of us," he wrote.

New leadership drives organisational reset

The cuts mark one of the first significant organisational changes under Hazelbaker's expanded leadership remit.

In a separate note to affected teams, Hazelbaker said the People organisation had become increasingly difficult to manage due to overlapping responsibilities and fragmented structures.

According to the memo, the goal is to create a "more connected, modern, operationally excellent organisation".

She said some parts of the function had developed unclear ownership structures and were operating too far from the business units they were intended to support.

"Some segments have become complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support," Hazelbaker said.

The restructuring is intended to reduce duplication, clarify accountability and align people teams more closely with operational priorities across the company.

Key details of the restructuring

Key facts disclosed by Uber and reported by CNBC include:

• 23% of employees in the People and Places division are being cut.
• The division includes HR, recruitment and workplace-related functions.
• The affected roles represent well under 1% of Uber's total workforce.
• Uber's global employee base stands at approximately 34,000 people.
• The changes come shortly after Jill Hazelbaker's promotion to President.

The move follows a broader trend among large technology companies seeking to streamline corporate functions after years of rapid expansion.

Uber distances layoffs from AI narrative

The announcement arrives amid growing scrutiny of how artificial intelligence is reshaping corporate workforces.

Several major companies have recently linked workforce reductions to automation initiatives or AI-driven productivity gains. Uber, however, has been explicit that the latest cuts were not connected to AI adoption.

A company spokesperson told media outlets that the layoffs within the People and Places organisation were not driven by artificial intelligence.

That distinction is notable because Uber has been increasingly vocal about the impact AI is having across its operations.

Last month, Khosrowshahi said the company was hiring fewer employees because existing teams were becoming more productive with AI tools.

At the same time, Chief Operating Officer Andrew Macdonald acknowledged that productivity gains from AI had yet to fully justify the company's growing expenditure on AI services and tokens.

The comments highlighted a tension many technology companies are facing as they balance enthusiasm for AI-enabled efficiency with rising costs associated with deploying those tools at scale.

Company keeps close watch on AI spending

The workforce reductions also come days after Uber introduced spending controls for employees using agentic AI tools.

The company confirmed that employees are now subject to usage limits, with a basic spending tier of $1,500 per month, while higher limits are available depending on team requirements and approved use cases.

Uber's increasing focus on AI costs reflects a broader industry trend as businesses attempt to translate experimentation into measurable returns.

According to The Information, Uber's technology leadership previously indicated that the company had exhausted its planned 2026 AI budget within the first four months of the year.

Although Uber maintains that the People and Places restructuring is unrelated to AI, the timing places the layoffs within a wider conversation about workforce efficiency, operating costs and the role emerging technologies are playing in corporate decision-making.

Focus shifts to organisational efficiency

For Uber, the latest restructuring appears less about reducing headcount and more about redesigning how a critical corporate function operates.

The company is betting that a leaner, more integrated People organisation can better support its next phase of growth while reducing organisational complexity.

As technology companies continue to reassess workforce structures in an increasingly AI-driven business environment, Uber's move underscores a reality facing many employers: efficiency programmes may increasingly reshape support functions even when artificial intelligence is not the direct trigger.

Bloomberg first reported the layoffs.