Uber CEO says layoffs will fund cheaper rides and new growth initiatives

Uber disclosed a 10% cut to its corporate workforce, amounting to about 3,300 jobs, marking its largest layoff wave since the pandemic. Dara Khosrowshahi told investors that the streamlined structure will generate savings that the company plans to redirect into lower fares, broader ride choices and continued growth investments. He cited a reversal in U.S. mobility insurance expenses, which are now being used to further reduce prices for riders.

At the Goldman Sachs Communacopia + Technology Conference, Khosrowshahi described a “barbell strategy” that uses profits from premium services like Uber Black to fund lower-cost offerings, including the Wait & Save discount program. Uber’s stock rose nearly 2% after the layoff news, while the company reported double-digit revenue growth and a record increase in first-time users. However, the firm faces ongoing competition from autonomous-vehicle firms such as Waymo, whose partnership with Uber in Austin and Atlanta has become strained.