Uber cuts 10% of customer service staff as AI becomes latest driver of tech layoffs

Report: Uber Replaces 10% of Customer Service Staff With AI. What Could Go Wrong?

The next time you reach out to Uber's customer support, don't be surprised if you receive an AI-generated response. In an effort to simplify operations, the company has laid off 10% of its customer service staff and is planning to replace them with AI, Bloomberg reports. The affected employees are part of Uber's Community Operations team and were informed of the layoffs on Wednesday. In addition to the workforce reduction, Uber has asked employees who have been working from home to comply with the company's return-to-office mandate. Both measures are reportedly intended to fix Uber's fragmented customer service operations and improve overall efficiency. "Our organization has become too complex and siloed," Megha Yethadka, Uber's VP of global community operations, wrote in an internal memo viewed by Bloomberg. She added that the unit had made strides in AI, "but to unlock this potential, we need an effective organization to layer AI on. We cannot scale frontier technology on top of fragmented processes." It's no longer unusual for tech-reliant companies to use AI assistants for customer service. Klarna, Airbnb, Bank of America, and several others have already deployed them. In many cases, this could lead to job cuts, putting frustrated customers at the mercy of an AI. Users on Reddit and X have repeatedly expressed their displeasure with Uber's customer support team, whether they're seeking answers about charges, no-show bookings, or driver misconduct. "They are the biggest rideshare company and yet their customer service for riders and drivers is s**t. How does that make sense?," wrote a user on Reddit last year. "Why would you slack so much on such a key area that can't be that expensive to run especially with as much money as they make and how long they have been around."

Uber lays off 10 percent of its customer service team in favor of using AI - Engadget

Uber has laid off 10 percent of its customer service team, and according to Bloomberg, the company cited AI as the reason for the job cuts. An Uber spokesperson told the publication that the cuts were done "to simplify operations, strengthen in-person collaboration and continue to embrace AI." The division affected by the layoffs is called Community Operations, Uber's global customer support network across its different businesses and across languages. It has teams for specific regions and countries that work closely with local businesses and drivers. "Our organization has become too complex and siloed," Megha Yethadka, Uber's vice president of global community operations, reportedly told her team in a memo. Yethadka added that the department "has made some strides" in using AI, but to be able to scale its use, it needs an "effective organization to layer AI on." Bloomberg didn't say what Uber will use generative AI for within the organization that makes it necessary to lay off people. However, AI agents for customer service have made great improvements lately. Voice AI has become better and better at being able to naturally communicate with customers and understand and respond to their needs and complaints. In addition to announcing job cuts, Uber also reportedly asked people working for the team remotely to relocate to hub offices as part of its return-to-office mandate. It previously said that it was slowing hiring due to AI use, as well. Uber joins the growing list of companies that point to AI as the reason for layoffs. In June, Oracle cut 21,000 roles worldwide, citing the "adoption and deployment of AI technologies." Snap laid off around 1,000 workers in April, seemingly to replace them with AI. Meta also recently reduced its workforce by 10 percent, a move that affected 8,000 jobs, and then moved 7,000 personnel to new organizations focused on building AI tools.

Uber cuts 10% of customer-service jobs, citing AI

Uber has cut a tenth of its customer-service staff and, for the first time, named AI as the reason. A memo to the team said the group had grown "too complex and siloed" to build AI on. Remote workers must now move to an office. Uber has trimmed its customer-service ranks and pointed at AI. The company cut 10% of jobs in its community operations team on Wednesday. It is part of a wider push to "simplify operations, strengthen in-person collaboration, and continue to embrace AI," a spokesperson told Bloomberg by email. It is a first for Uber. The company has cut staff before. But this is the first time it has tied layoffs directly to an AI efficiency drive, Bloomberg reported. It is also the second round of cuts in under two months. "Our organisation has become too complex and siloed," Megha Yethadka, Uber's vice-president of global community operations, wrote in an internal memo. Bloomberg obtained it. The team "has made some strides" with AI, she said. "But to unlock this potential, we need an effective organisation to layer AI on. We cannot scale frontier technology on top of fragmented processes." A familiar refrain Uber joins a growing list. In recent months, firms from payments company Block to Oracle have named AI as a reason for job cuts. Monday.com trimmed a fifth of its staff under an "AI growth" banner. Even big banks have made the same case. The pattern is not universal. Some leaders argue AI is changing jobs, not destroying them. Others warn that "AI efficiency" can be a tidy label for ordinary cost-cutting. Uber does not disclose the size of its customer-service arm, so the human total stays unclear. Back to the office, too The cuts came with a second demand. Remote workers on the team must relocate to a hub office, in line with Uber's return-to-office rule. The reductions follow a June cut of 23% of Uber's "people" division, which the company said was under 1% of its 34,000 staff. Slower hiring, but not everywhere Uber flagged the shift in May, when it said AI would slow its hiring. Even so, it is still recruiting for more than 500 roles. Some are engineers to support its robotaxi partnerships. Shares barely moved after hours. The message under the memo is plain. Uber wants a leaner team it can wire AI into, not the sprawling one it has. Whether that lifts service or just trims payroll is the test the next few quarters will set.

Uber cuts 10% of customer service staff as AI reshapes operations

Uber has laid off 10 percent of its customer service team, attributing the cuts to the implementation of artificial intelligence (AI) in operations, according to Bloomberg. An Uber spokesperson stated the layoffs are intended to "simplify operations, strengthen in-person collaboration and continue to embrace AI." The affected division, Community Operations, encompasses Uber's global customer support network across various businesses and languages. Megha Yethadka, Uber's vice president of global community operations, informed her team that the organization had become "too complex and siloed." She noted that while progress has been made in AI, a more effective organizational structure is required to scale its use. Bloomberg did not disclose the specific applications of generative AI that prompted the job cuts. Improvements in voice AI have enabled more natural communication and better understanding of customer needs. Alongside the layoffs, Uber has directed remote employees to relocate to hub offices as part of its return-to-office policy. The company had previously stated that it would slow hiring due to the integration of AI technologies. Uber's job cuts follow a trend among technology firms leveraging AI to restructure their operations. In June, Oracle announced the reduction of 21,000 roles worldwide citing AI adoption. Snap laid off approximately 1,000 workers in April, reportedly to replace positions with AI. Meta also recently reduced its workforce by 10 percent, impacting 8,000 jobs, and shifted 7,000 staff to new divisions focused on AI development.

Uber cuts 10% customer service jobs as AI becomes latest driver of tech layoffs

Uber has cut 10% of its customer service workforce, marking the first time the company has directly linked layoffs to artificial intelligence. The move reflects a broader Silicon Valley trend as Big Tech firms including Amazon, Microsoft, Oracle and Meta restructure teams, automate work and accelerate AI adoption across operations. Uber Technologies has cut 10% of roles in its customer service operations, becoming the latest company to link layoffs directly to artificial intelligence as Silicon Valley reshapes workforces around automation. The company confirmed the cuts on Wednesday within its community operations team. Uber is working "to simplify operations, strengthen in-person collaboration, and continue to embrace AI," an Uber spokesperson said in an emailed statement, Bloomberg reported. As part of the changes, employees in the team who had been working remotely have also been asked to relocate to one of the company's hub offices in line with Uber's return-to-office policy, the spokesperson said. Also Read: 120,000 tech jobs cut in 2026 as AI drives Big Tech's reset Uber layoffs amid AI-driven restructuringUber's layoff announcement marks the first time the cab aggregator has connected job cuts to efficiency gains from AI. It also represents the company's second round of workforce reductions in less than two months as it seeks to simplify its organisational structure. Also Read: Uber slashes 23% of HR and recruitment jobs "Our organization has become too complex and siloed," Megha Yethadka, Uber's vice president of global community operations, said in a memo to employees on Wednesday. The department "has made some strides" in using AI, she said, "but to unlock this potential, we need an effective organization to layer AI on. We cannot scale frontier technology on top of fragmented processes." Uber shares were little changed in after-hours trading following the announcement. The latest announcement follows another restructuring in June, when Uber reduced its so-called people division by 23%, affecting fewer than 1% of its 34,000 global employees after a new president took charge of the unit. The company does not disclose the size of its customer service operations. Uber had already indicated in May that it would slow hiring because of its growing internal use of AI. Even so, it continues to recruit for more than 500 positions listed on its careers website, including engineering roles supporting its expanding robotaxi partnerships. Tech sector layoffs and AI's roleUber's move comes as more technology companies identify AI as a driver behind workforce restructuring rather than weak demand or slowing business conditions. Businesses ranging from financial services firm Block Inc. to cloud software company Oracle Corp. have pointed to AI while announcing job cuts in recent months. The latest reduction also follows Amazon's decision on Wednesday to cut jobs within its artificial general intelligence division, the latest in a string of smaller layoffs across the company since a much larger round in January. Also Read: Amazon cuts jobs in its artificial general intelligence group Silicon Valley's new layoff cycle The technology industry's latest wave of job cuts in 2026 differs markedly from the post-pandemic layoffs seen over the past few years. Instead of responding to weaker demand or over-hiring during Covid-19, companies are increasingly restructuring around AI, removing management layers and automating routine work even as revenues remain strong and investment in AI continues to rise. Earlier this month, Microsoft eliminated about 4,800 jobs, representing roughly 2.1% of its global workforce. While the company said the roles were "not being replaced by AI", it also acknowledged that AI is changing how work is carried out by automating many routine tasks. Uber joins a growing list of companies including Oracle, Meta, Cisco, Amazon, Cloudflare, Dell, Snap and PayPal that have announced thousands of layoffs this year while simultaneously stepping up investment in AI. According to layoffs tracker Layoffs.fyi, around 1,20,000 technology jobs have already been eliminated globally in 2026.

Uber cuts dozens of jobs amid AI restructuring

Companies have often described artificial intelligence as a tool that will help employees work faster rather than replace them. But a growing number of major employers are now directly linking workforce reductions to the technology. Meta recently eliminated thousands of positions as it redirects spending and resources toward artificial-intelligence infrastructure. Meanwhile, Block recently cut roughly 4,000 jobs after CEO Jack Dorsey posted on X (the former Twitter) saying that AI had fundamentally changed how the company operates. Now, Uber is eliminating customer service jobs as it restructures the organization to reportedly rely more on artificial intelligence. Uber Technologies will permanently cut 41 positions at its San Francisco campuses and among its remote California workforce on Sept. 21, according to a recent Worker Adjustment and Retraining Notification (WARN) notice reviewed by TheStreet. The latest cuts include service-team analysts, Community Operations management, Centers of Excellence employees, and program-management positions, indicating that the layoffs affect Uber's customer-service organization. The filing also says approximately nine affected employees may be offered the opportunity to remain with Uber if they relocate. The notice does not identify the destination offices or say whether Uber will cover their moving expenses. Uber did not immediately respond to TheStreet's request for comment. Uber cuts service and Community Operations jobs Most of the California layoffs will affect employees tied to Uber's main campus at 1655 Third Street in San Francisco. The company is eliminating 26 positions connected to that location, one position at its nearby 1725 Third Street office, and 14 remote California positions. The largest affected group consists of 13 Service Team Analyst III employees. Other affected jobs include nine Centers of Excellence specialists, two Centers of Excellence team leads, eight program managers, and several program specialist positions. Uber's Community Operations organization provides support to riders, drivers, couriers, restaurants, and other merchants using its platforms. On July 22, Bloomberg first reported that Uber was cutting roughly 10% of its Community Operations organization as it consolidated teams, eliminated management positions, and increased its use of artificial intelligence. Uber did not confirm the exact number of employees to be laid off. The WARN notice also does not state that AI caused the layoffs, describing it only as a permanent reduction in force. However, the filing is dated July 22, the same day Uber informed employees about the broader Community Operations restructuring reported by Bloomberg. Megha Yethadka, Uber's vice president of global Community Operations, told employees that the company needed to simplify fragmented processes before it could fully scale its AI technology, Bloomberg reported. "We cannot scale frontier technology on top of fragmented processes," Yethadka wrote in the employee memo, Bloomberg reported. Uber also told remote employees in the division that they would generally be required to relocate near one of its designated office hubs and work in person at least three days a week. MOZCO Mateusz Szymanski / Getty Images Uber says layoffs extend beyond California The notice also confirms that the reduction extends beyond California. In a template letter prepared for affected employees, Uber said terminations were expected to begin on Aug. 21 at certain locations outside California. The filing does not identify those locations, the states involved, or the number of employees affected elsewhere. Uber's language nevertheless establishes that the California positions represent only part of a wider reduction. Affected California employees were given 60 days' notice and will continue receiving their full pay and benefits during that period. The employees are not represented by a union and do not have bumping rights. Uber cuts jobs a month after earlier restructuring The Community Operations layoffs come roughly one month after Uber eliminated approximately 23% of the positions in its People and Places division, which includes human resources and recruiting. Those earlier reductions affected less than 1% of Uber's roughly 34,000-person global workforce. Uber said at the time that the People and Places restructuring was intended to simplify the organization and was not connected to artificial intelligence. California's public WARN report lists 32 layoffs associated with a notice Uber submitted on June 3, the same day the company announced the People and Places cuts. The latest July notice supplements that earlier filing and adds 41 permanent California terminations scheduled for Sept. 21. The two notices bring Uber's publicly reported total in California to at least 73 positions. However, unlike the June restructuring, the new Community Operations cuts are being carried out as Uber increases its use of AI across customer support and other parts of the business. Uber expands AI use across its business The customer-service restructuring comes as Uber expands its use of artificial intelligence across both its internal operations and consumer products. Uber, in its first-quarter earnings call, said that AI coding tools were being used by nearly all of its engineers, with the resulting productivity gains allowing the company to moderate hiring compared with its original 2026 plans. In June, Uber detailed an AI-powered Cart Assistant for Uber Eats that can interpret a shopper's request, search available products, and assemble a grocery cart. The company has also expanded through autonomous-driving partnerships with Waymo and several other developers, positioning the Uber app as a distribution platform for robotaxi fleets without relying on a single self-driving provider. As TheStreet previously reported, Uber is pursuing those new markets while attempting to keep its corporate organization leaner and slow the pace of hiring. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published July 29, 2026 at 3:07 PM.