Popular ride-hailing service Uber has announced plans to cut about 10% of its worldwide workforce as part of a major restructuring aimed at reducing layers of management.
This decision has emerged from an executive letter obtained by the US media outlet Bloomberg, in which the company's CEO Dara Khosrowshahi revealed those figures.
According to the document, the number of managers at Uber Technologies, the formal name of the company, will be reduced by 20%. The firm also wants to halve the number of teams consisting of just one or two employees and consolidate some of its divisions.
The news article reports that Uber plans to redirect the savings from the restructuring toward developing its core business operations and increasing compensation for drivers, couriers and merchants.
Upon emergence of those new, Uber shares rose 2% in premarket trading on September 2. However, the company’s market capitalization has fallen 7.9% since the beginning of the year and currently stands at $153.7 billion.
By Nazrin Sadigova
