Uber Technologies has eliminated 10% of roles within its customer service operations, linking the layoffs directly to an ongoing push to simplify its organisational structure and accelerate the use of artificial intelligence across support functions. The reductions affect the company’s community operations team, which handles support for riders and drivers, and form part of what Uber describes as efforts “to simplify operations, strengthen in-person collaboration, and continue to embrace AI.”
The company communicated the changes internally on July 22, saying the decision reflects a broader shift towards AI-powered tools to manage routine customer queries and streamline workflows in its support organisation. Uber has been expanding the use of AI agents in customer service and software development, with chief executive Dara Khosrowshahi recently noting that around 10% of the company’s code is now generated by AI systems.
A spokesperson said the restructuring is intended to reduce fragmentation and overlapping responsibilities within support teams, which the company believes have been slowing decision-making and weakening connections to riders, drivers and business partners. Uber framed the cuts as part of building a “more connected, modern, operationally excellent organisation,” while reiterating that AI is a key enabler of the shift.
The move comes amid rising scrutiny of corporate AI spending, after Uber exhausted its annual AI budget for 2026 within the first four months of the year due to rapid adoption of coding tools such as Anthropic’s Claude Code among engineers. In response, the company has introduced usage caps and tighter monthly budgets for AI platforms, signalling a new focus on measuring the tangible benefits of AI against its costs.
Uber’s latest layoffs mark its second notable restructuring in recent months and underscore a growing tension across the tech sector, where companies are investing heavily in AI while also using automation to rationalise headcount in back-office and support roles. Uber has said affected employees will receive support as they exit, even as the company continues to lean on AI to reshape its operations.
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