Uber is restructuring its workforce once again, announcing a significant reduction within its people division as the company seeks to streamline operations and improve organizational efficiency.

The ride-hailing and food delivery giant is cutting approximately 23% of roles across its human resources and recruitment teams. While Uber did not reveal the exact number of affected employees, the company stated that the layoffs represent well under 1% of its global workforce of around 34,000 employees.

Chief Executive Officer Dara Khosrowshahi described the move as a necessary step to strengthen the company's operations and maximize the effectiveness of its people team.

In an internal memo, Khosrowshahi explained that the restructuring is designed to position Uber for future growth while improving coordination across departments.

The changes come shortly after Jill Hazelbaker was promoted to the role of President and Chief Corporate Affairs Officer. In a message to employees, Hazelbaker said the goal is to create a more connected, modern, and operationally efficient organization.

According to her, some areas of the company had become increasingly complex, with overlapping responsibilities, unclear decision-making structures, and teams operating too far from the business units they were intended to support.

The announcement arrives amid a broader trend across the technology sector, where many companies are reducing headcount while investing heavily in artificial intelligence and automation technologies.

Although Uber did not directly link the layoffs to AI initiatives, the company recently confirmed that it has implemented spending tiers for employee access to advanced AI and agentic tools. Reports indicate that Uber has rapidly increased its investment in artificial intelligence, with internal budgets for certain AI technologies being exhausted much sooner than anticipated.

Company representatives clarified that these spending limits are designed to manage the use of specialized AI and coding tools rather than restrict innovation. The system allows teams to access different levels of AI resources depending on their operational needs.

As businesses continue to integrate artificial intelligence into daily operations, workforce restructuring has become increasingly common across the technology industry. Companies argue that automation can improve productivity and efficiency, while critics raise concerns about the long-term impact on employment opportunities.

For Uber, the latest changes represent part of a broader effort to simplify internal structures, improve decision-making processes, and position the company for continued growth in an increasingly competitive and technology-driven market.