Uber Layoffs 2026: Ride-Hailing Giant Cuts 10% Customer Service Jobs as AI-Driven Restructuring Accelerates

Ride-hailing major Uber Technologies has announced another round of job cuts as the company accelerates the adoption of artificial intelligence (AI) across its operations. Around 10% of employees in Uber's customer service division have been laid off as the US-based technology company looks to simplify its organisational structure and improve efficiency through AI.

Uber Layoffs: Ride-Hailing Giant Cuts 10% Customer Service Jobs as AI Push Accelerates

The latest restructuring mainly affects Uber's Community Operations team, which manages customer support for riders, drivers and delivery partners. Along with the layoffs, the company has also asked many remote employees in the division to relocate to its hub offices as part of its broader return-to-office strategy.

According to an internal memo, Uber believes its customer support organisation has become too complex, making it difficult to fully benefit from AI-powered tools.

Megha Yethatika, Uber's Vice President of Global Community Operations, said the company wants to simplify internal processes before expanding the use of artificial intelligence. She noted that AI can deliver better results only when teams operate through a streamlined structure instead of fragmented systems.

The company believes AI can automate repetitive customer support tasks, reduce response times and improve overall productivity. At the same time, Uber says it remains focused on maintaining service quality while expanding automation across its support operations.

Second Round of Layoffs in Uber in Less Than Two Months

This marks Uber's second restructuring exercise in less than two months. In June, the San Francisco-headquartered company reduced around 23% of jobs in its Human Resources (People Operations) division. Earlier this year, Uber had also indicated that it would slow hiring as artificial intelligence increasingly takes over routine tasks.

Despite the workforce reduction, Uber continues to recruit for specialised positions. The company still has hundreds of open roles, particularly in engineering, autonomous vehicle technology and robotaxi partnerships, reflecting its continued investment in future mobility businesses.

Uber Increases Investment in Artificial Intelligence

While AI is expected to improve operational efficiency, it has also increased Uber's technology spending.

The NASDAQ-listed company has been investing heavily in AI-powered coding platforms and software used by engineers. According to Chief Technology Officer Praveen Neppalli Naga, Uber exhausted its annual budget for one AI coding platform within just four months because of high employee usage.

To keep expenses under control, the company has now introduced monthly spending limits on AI tools while continuing to encourage wider adoption across its engineering teams.

Uber's AI Strategy Delivers Efficiency Gains Across Multiple Departments

Uber says artificial intelligence has already helped improve efficiency across several departments. For instance, one AI-powered internal program reportedly reduced the time required to prepare financial reports from nearly two days to around 10 minutes. Similar AI applications are also being used in the company's finance, legal and human resources functions to automate repetitive administrative work.

However, customer service remains a more sensitive area, as support teams regularly deal with complaints, refunds, safety issues and account-related queries. Uber will therefore need to ensure that greater automation does not come at the cost of customer experience.

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