Uber CEO Dara Khosrowshahi believes that laying off approximately 3,300 employees will be a good thing for customers, hinting that the company might use the savings to reduce prices. Earlier this month, Uber announced it was laying off 10 per cent of its corporate staff, in its largest cuts since the COVID-19 pandemic, to reduce management layers and better navigate the rise of robotaxis encroaching on its ride-hailing business.
Speaking at the Goldman Sachs Communacopia + Technology Conference, the Uber CEO highlighted that savings from the thousands of layoffs could translate into direct benefit for the passengers. The Uber chief added that the money saved from insurance will also be used to lower the ride prices. Some of the savings may also be directed to Uber’s autonomous taxi network. Khosrowshahi refrained from doing so in his note to employees While major corporations have blamed artificial intelligence (AI) for layoffs. “A leaner organisation will mean clearer ownership, faster decisions, and more time spent building rather than coordinating. As per Khosrowshahi, the management layers and organisational complexity built during a period of rapid growth were now proving to be a hurdle in decision-making, which prompted the latest round of layoffs.
Uber plans to put more than $10 billion into robotaxis in the coming years, backing the companies developing autonomous-driving systems and positioning itself as a go-to marketplace for driverless rides.
“We are going to take the savings there and essentially reinvest it back in the business, lowering prices, improving selection, and continuing to invest in our growth program,” Khosrowshahi said, as per Fortune . It will also generate savings that we intend to reinvest in growth, innovation, and the capabilities that will matter most over the coming years,” Khosrowshahi said.
