Uber Technologies has reduced its customer service workforce by 10% as the company accelerates the use of artificial intelligence to streamline operations and improve efficiency. The move also includes relocating some remote employees to office hubs, signaling a broader shift in how the ride-hailing giant plans to manage its workforce in the AI era.

The layoffs impact employees in Uber’s Community Operations division, the team responsible for assisting riders, drivers and delivery partners. According to the company, the restructuring is part of a wider effort to simplify internal processes, encourage in-person collaboration and integrate AI more deeply into day-to-day operations.

AI Drives Organisational Restructuring

Uber believes its customer support organisation has become too fragmented to fully benefit from AI-powered tools.

In an internal communication, Vice President of Global Community Operations Megha Yethatika reportedly said the department had become “too complex and siloed,” making it difficult to scale next-generation technologies efficiently.

She noted that while Uber has already made significant progress in deploying AI, simplifying workflows is essential for unlocking its full potential across customer service operations.

The company has not revealed how many employees work in the division, leaving the exact number of affected workers undisclosed.

Second Round of Layoffs in Two Months

The latest workforce reduction follows another restructuring announced in June.

At that time, Uber eliminated approximately 23% of roles within its people division, representing less than 1% of its global workforce of around 34,000 employees. That move came shortly after new leadership took over the department and focused on organisational simplification.

This latest decision marks the first time Uber has explicitly connected layoffs to its AI adoption strategy.

Hiring Focus Shifts Toward AI and Engineering

Although Uber is reducing headcount in customer service, the company continues to recruit talent in strategic technology areas.

Earlier this year, Uber said it would slow overall hiring as AI becomes more deeply integrated into its business. However, it still has more than 500 open positions, many of them in engineering and technology teams supporting autonomous vehicle initiatives and robotaxi partnerships.

The company’s hiring strategy reflects a broader industry trend of reducing roles that can be automated while expanding investment in AI-related expertise.

AI Continues to Reshape the Tech Industry

Uber joins a growing list of technology companies that are restructuring operations around artificial intelligence.

Several major firms, including Block and Oracle, have recently linked workforce reductions to increased AI adoption and automation. As businesses deploy AI to handle repetitive tasks and improve operational efficiency, workforce structures across the technology sector are evolving rapidly.

Uber’s latest restructuring highlights how artificial intelligence is moving beyond productivity gains and beginning to influence long-term hiring strategies, organisational design and workforce planning.