The sweeping cuts mark the largest headcount reduction at the San Francisco-based ride-hailing giant since the COVID-19 pandemic, as the company redirects capital toward building an autonomous vehicle future and increasing investments in drivers, couriers, and merchants.
The sudden market exits and layoffs unfold against a backdrop of strong corporate revenue growth. According to financial figures, Uber’s annual revenue jumped 18 percent between 2024 and 2025, while second-quarter revenue in 2026 climbed 12 percent. Despite this top-line expansion, CEO Dara Khosrowshahi stated in the memo that the organization needed to simplify team structures, eliminate layers of management, and halve the number of micro-teams where managers oversee only one or two direct reports.
Immediate Exit From Nigeria and Uganda
Uber confirmed to Al Jazeera that its withdrawal from Nigeria—Africa’s most populous nation—and Uganda took effect immediately. A company spokesperson emphasized that the decision applies strictly to those two markets and does not impact operations across the rest of the continent, reiterating that Uber remains deeply committed to sub-Saharan Africa.
The Nigerian operating environment had grown increasingly challenging for ride-hailing platforms. Economic pressures intensified following the removal of Nigeria’s fuel subsidy after President Bola Tinubu’s election in 2023, which spiked the cost of living. In Uganda, local media noted that commuters in Kampala would see a major shift, with competitors like Faras, Bolt, and SafeBoda positioned to fill the void.
Global Workforce Cuts and Push for Automation
The 3,300 layoffs follow a series of workforce reductions tied heavily to artificial intelligence and automation initiatives. Bloomberg first reported in July that Uber eliminated 10 percent of its customer service roles as it embraced AI tools, a technology shift that also prompted a broader hiring slowdown in May. Alongside these cuts, Khosrowshahi announced a strict return-to-office mandate, noting that only about 1 percent of employees will remain remote moving forward, aiming to foster faster decision-making and clearer ownership.
At the same time, Uber is aggressively scaling its autonomous vehicle strategy, planning to invest $10 billion into its robotaxi unit. The company currently partners with Waymo to operate driverless cars through the Uber app in Atlanta, Georgia, and Austin, Texas. However, competition in the autonomous space is intensifying as Waymo expands independently and Tesla advances its own robotaxi initiatives, holding events for its Cybercab model in Austin, Texas.
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