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Uber's AI Push Triggers Second Round of Layoffs in Just Two Months: Who's Affected This Time?

Uber cut 10% of its customer service workforce on Wednesday, the company's second round of layoffs in two months, as it restructures operations around artificial intelligence. Uber Vice President of Global Community Operations Megha Yethatika said the organization had become too complex and siloed and needed to be more effective before expanding AI across operations. The cuts follow a 23% reduction in Uber's People and Places division in June, which the company said was not AI-related.

read4 min views1 publishedJul 24, 2026
Uber's AI Push Triggers Second Round of Layoffs in Just Two Months: Who's Affected This Time?
Image: Ibtimes (auto-discovered)

Uber's latest job cuts target customer service teams, highlighting how AI is reshaping roles across the technology industry #

For thousands of technology workers, artificial intelligence is no longer a future possibility. It is reshaping jobs today. Uber has announced another round of layoffs, cutting 10% of its customer service workforce as it restructures operations around artificial intelligence. The move marks the company's second workforce reduction in less than two months and comes as technology firms increasingly adopt AI to streamline operations. The latest cuts affect customer service teams, while Uber says the changes are designed to simplify the business and support wider use of AI.

Customer Service Teams Face the Latest Cuts #

Uber confirmed on Wednesday that it had reduced around 10% of its customer service department. A company spokesperson told Yahoo Finance that the layoffs were intended to simplify operations, strengthen in-person collaboration, and continue embracing AI across the business.

Although the reductions affect only a small portion of Uber's global workforce of more than 40,000 employees, they represent another step in the company's broader organisational changes. In an internal email obtained by Yahoo Finance, Uber Vice President of Global Community Operations Megha Yethatika said the organisation had become too complex and siloed. She wrote that Uber needed a more effective organisation before expanding artificial intelligence across its operations.

Second Workforce Reduction in Two Months #

The latest layoffs follow another major restructuring announced in June. According to Bloomberg, Uber reduced around 23% of its People and Places division, which includes human resources, recruitment and workplace facilities. The changes came shortly after Jill Hazelbaker was appointed President and Chief Communications Officer.

Uber told CNBC at the time that those layoffs were not related to artificial intelligence. The latest announcement is different because Uber has explicitly linked the restructuring to its efforts to embrace AI.

AI Continues to Reshape the Technology Industry #

Uber is not alone in changing its workforce as artificial intelligence becomes more widely adopted. According to research by UK-based investment firm TradingPlatforms, AI-related restructuring has become one of the biggest employment trends in the technology sector during 2026.

The firm's analysis found that Oracle has recorded the largest number of technology layoffs this year, with more than 25,000 positions eliminated. In a recent filing with the US Securities and Exchange Commission, Oracle said the adoption and deployment of AI technologies had resulted in workforce reductions and could continue to do so through future restructuring.

Task management software company Monday.com also announced workforce reductions this week. TechCrunch reported that the company cut around 20% of its staff, or approximately 630 employees, with AI playing a role in the decision. Not every technology company has connected job reductions directly to AI.

Amazon, for example, announced major layoffs earlier this year as part of wider organisational changes. Senior Vice President Beth Galetti said the company had been reducing management layers, increasing ownership and removing bureaucracy.

Return-to-Office Policy Also Tightens #

The restructuring extends beyond job reductions. According to Bloomberg and LinkedIn News, Uber has also instructed remote employees to return to designated hub offices under its stricter return-to-office policy.

The company says the changes are intended to improve collaboration as teams work more closely on AI-enabled products and operations. Several large technology firms have introduced similar workplace policies over the past two years.

AI's Growing Impact on Jobs #

Technology services company Cognizant recently estimated that 93% of jobs could be affected by artificial intelligence in some way. The company also said that the pace of AI-driven change has arrived six years earlier than it had previously expected. In its analysis, Cognizant said the technology is affecting more jobs, more quickly, and on a greater scale than earlier forecasts suggested.

Companies are responding in different ways. Some are automating repetitive work, while others are redesigning roles so employees work alongside AI systems rather than replacing them entirely.

Uber has not announced whether further workforce reductions are planned. The latest layoffs place the ride-hailing company among a growing number of technology firms that have restructured their workforces during 2026 while increasing investment in artificial intelligence.

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