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Uber will cut about 10 per cent of its global workforce, and Australian staff are among those affected.
The ride-share company is axing about 3300 roles; the company employed 34,000 people worldwide at the end of last year.
An Uber spokesperson confirmed Australian employees were affected but would not say how many. The company had 568 staff here as of December 31.
Chief executive Dara Khosrowshahi told employees in a memo late on Wednesday, AEST, that Uber’s revenue had nearly tripled over five years, but that growth had brought extra management layers and unclear ownership of decisions. The changes would make the company “simpler and faster”, he said.
Uber has cut the number of employees sitting seven or more layers below the chief executive by 20 per cent, and halved the number of teams with only one or two reports. Only about 1 per cent of staff will remain fully remote.
Khosrowshahi did not link the cuts to artificial intelligence, which has driven a wave of recent job losses across the technology sector. He said the savings would be reinvested, including in a previously flagged commitment of more than $US10 billion ($14 billion) to autonomous vehicles. Uber shares rose on the news. The company is now worth more than $US150 billion.
Australia is one of Uber’s most lucrative markets globally.
Australians paid more than $14.5 billion to Uber entities last year for rides, food delivery and other services, this masthead previously reported, up more than $2 billion on the year before.
That generated $2.12 billion in gross profit locally, almost all of which went out again as administrative expenses, including $1.85 billion in unspecified “service fees” paid to related companies overseas. The Australian arm posted an $8.7 million net profit and paid $15.58 million in income tax.
More than 100,000 people drive or deliver for Uber in Australia. They are classified as contractors rather than employees, and are not part of the headcount being cut.
Their pay and conditions have just changed, with minimum standards for food delivery workers taking effect on August 17 under the Albanese government’s gig economy laws. The laws set an earnings floor of $31.30 an hour for bicycle riders and $32 for car drivers during “engaged time”. A separate application covering rideshare drivers is before the Fair Work Commission.
Uber is also fighting an $81.5 million payroll tax dispute with the NSW government in the High Court, after losing in the Court of Appeal last year. A loss could set a precedent in every state.
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