TLDR
- Uber cut 10% of its community operations (customer service) workforce on Wednesday
- The company cited a need to simplify operations and “embrace AI” as the primary reason
- This is the first time Uber has directly linked layoffs to its AI strategy
- It’s the second round of cuts in under two months — June saw 23% of the people division let go
- UBER stock is down ~14% year-to-date, trading near $70 vs. a 52-week high of $101.99
Uber cut 10% of its customer service workforce on Wednesday, citing a push to simplify operations and expand its use of artificial intelligence.
The cuts hit the company’s community operations team. Uber also told remote workers in the affected group to relocate to hub offices, in line with its return-to-office policy.
UBER stock was down 1.71% on the news, trading near $70. The stock is about 14% lower year-to-date and sits well below its 52-week high of $101.99.
In a memo to staff, Megha Yethatika, Uber’s VP of Global Community Operations, said the team had become “too complex and siloed.” She said the company has made progress with AI, but needs a cleaner structure to build on top of it.
“We cannot scale frontier technology on top of fragmented processes,” Yethatika wrote.
This is the first time Uber has directly tied job cuts to AI. The company had previously said it would slow hiring due to internal AI use, but still lists over 500 open roles on its jobs page.
Second Round of Cuts in Two Months
This is the second restructuring in less than two months. In June, Uber cut 23% of its people division — though that represented less than 1% of its roughly 34,000 global employees.
The latest round follows a pattern seen at other companies. Block and Oracle have both cited AI efficiency gains as reasons for workforce reductions in recent months.
Uber’s move signals it is now doing the same.
Wall Street Still Bullish
Despite the stock’s recent slide, Wall Street remains upbeat. Based on 29 Buy ratings and two Hold ratings over the past three months, UBER holds a Strong Buy consensus on Wall Street.
The average analyst price target sits at $107.61, implying roughly 53% upside from current levels.
Uber continues to generate strong cash flow and remains profitable. It is still actively investing in robotaxi partnerships and recruiting engineers to support that work.
The company has not announced any further planned cuts at this time.
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