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

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 restructuring

Uber'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 role

Uber'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.