By Chibuzor Alli
Uber is cutting fully remote work to about one per cent of its workforce as the ride-hailing company restructures its operations and plans to eliminate about 3,300 jobs.
The company’s Chief Executive Officer, Dara Khosrowshahi, disclosed the change in a memo to employees published on Uber’s website and seen by PUNCH Online on Wednesday.
“We are also asking the vast majority of remote employees to move to an office, and going forward, only 1% of employees will be remote,” the executive wrote.
Uber did not disclose the number of employees currently working fully remotely, making it unclear how many workers will be required to return to offices.
The company will retain its hybrid working policy, under which employees are required to work from an office three days a week.
Khosrowshahi said the decision was driven by what the company had observed from employees working together physically, particularly in collaboration, problem-solving and the development of early-career workers.
“The benefits of sitting together, collaborating in person, and solving problems as a team are clearer than ever in our post-COVID world,” he stated.
Uber to concentrate staff in key hubs
The company is also establishing clearer principles for where roles and teams should be located, with the aim of concentrating employees in a smaller number of key hubs.
Global teams will be concentrated in major global hubs, including New York and San Francisco, while regional teams will be based in designated regional hubs.
Local teams will be located in country hubs, while technology teams will be concentrated in technology hubs.
Uber will also prioritise having managers and their teams working in the same location where possible, particularly for employees earlier in their careers.
The changes form part of a broader restructuring aimed at simplifying the company’s organisation, reducing management layers and eliminating smaller teams with limited numbers of direct reports.
Khosrowshahi said Uber had expanded substantially over the past five years, but the growth had resulted in additional organisational layers, greater coordination requirements and more fragmented ownership.
The restructuring is expected to reduce Uber’s management ranks by about 20 per cent and cut the number of so-called micro-teams, comprising managers with only one or two direct reports, by about half.
Uber cuts jobs in biggest reduction since pandemic
The job cuts represent Uber’s largest workforce reduction since the COVID-19 pandemic, as the company seeks to streamline its operations and reduce organisational complexity.
The restructuring comes alongside changes to the company’s approach to workplace arrangements, with fully remote roles set to become increasingly limited.
Uber exits Nigeria after 12 years
In Nigeria, Uber ended its ride-hailing operations in September after about 12 years in the country.
The company’s exit came amid changes in the local operating environment and competition from other mobility platforms. Uber also ended its operations in Uganda.
Uber began operations in Lagos in 2014 before expanding to other Nigerian cities.
Its departure leaves Bolt and other ride-hailing platforms competing for drivers and passengers in a Nigerian market that has expanded significantly since Uber launched its services.
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