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Uber lays off 23% of its HR workforce
04 Jun 2026

Uber has announced a major restructuring in its People and Places division, resulting in a significant workforce reduction.

The company has laid off around 23% of employees from this division, which is responsible for human resources, recruitment, and workplace operations.

While the exact number of roles cut has not been revealed by Uber, reports indicate that it constitutes nearly 1% of the company's total workforce.

Leadership changes prompt restructuring
Leadership changes

The restructuring comes after a leadership reshuffle that saw President Jill Hazelbaker take charge of the division. Her mandate is to simplify operations and improve organizational effectiveness.

The People and Places division handles key functions such as talent acquisition, employee experience, workplace management, and HR operations.

Hazelbaker has said some parts of the organization had become increasingly fragmented over time with overlapping responsibilities and unclear accountability.

Aim to foster better integration with business units
Efficiency goals

Hazelbaker has said the changes are aimed at creating a more connected and operationally efficient organization.

Some teams, she noted, had become too detached from the business units and employees they were meant to support, limiting their effectiveness.

The restructuring is intended to simplify reporting structures and reduce complexity across the department, allowing teams to work more closely with business leaders and operational units.

AI tool costs surge for Uber
AI impact

Separately, Uber has been grappling with an AI-related challenge: a rapid rise in employee demand for AI tools.

Earlier reports indicated that the company blew through its planned 2026 budget for these tools in just four months.

The spike was reportedly fueled by increased usage of agentic AI systems, software tools capable of performing tasks with little human intervention.

Company imposes caps on AI tool access for employees
Spending caps

In response to the unexpected surge in spending, Uber imposed tiered caps on employee access to these tools.

Under the new system, employees in the base usage category have a monthly cap of $1,500 for AI tools. However, higher limits can be approved based on business needs.

This move highlights the balancing act many large tech companies are facing as they adopt AI-powered tools while also dealing with infrastructure and cost challenges associated with widespread adoption.