Uber has laid off 10 percent of its customer service team, with the company citing increased reliance on artificial intelligence (AI) as the reason for the workforce reduction. An Uber spokesperson stated the cuts aimed to “simplify operations, strengthen in-person collaboration and continue to embrace AI.” The layoffs predominantly impacted the Community Operations division, which serves as Uber’s global customer support network across various businesses and languages.

Megha Yethadka, Uber’s vice president of global community operations, communicated to her team that the organization has become “too complex and siloed.” She noted that while the department had made progress in integrating AI, an effective organization is necessary to further scale its capabilities. The specific applications for generative AI within the organization were not detailed by Bloomberg, though advancements in AI agents for customer service are acknowledged to have improved communication and responsiveness significantly.

In addition to job cuts, Uber has reportedly mandated that remote team members relocate to hub offices. This decision aligns with the company’s return-to-office policy, which follows previous announcements about slowing hiring due to AI enhancements in its operations. Uber’s layoffs are part of a broader trend, as other major companies also cite AI as a rationale for workforce reductions. Notably, Oracle announced 21,000 job cuts in June, Snap laid off approximately 1,000 employees in April, and Meta reduced its workforce by 10 percent, affecting 8,000 positions in a shift toward AI development.

Uber’s operational changes and layoffs reflect a significant shift in the company’s approach to customer service and technology integration, highlighting the ongoing impact of AI on employment within the sector.