Uber has reduced its workforce by 10% and has ceased operations in Nigeria and Uganda.

      Uber is eliminating approximately 3,300 positions, which is around 10% of its workforce, and closing operations in Nigeria and Uganda as it shifts its spending focus toward robotaxi development. An internal memo indicates that all impacted employees have been informed, except in cases where local procedures apply, such as in the EU, which requires consultation with workers’ representatives and a 30-day waiting period following notification to the authorities.

      According to Bloomberg, the company has announced the layoffs alongside the shutdowns in Nigeria and Uganda. The reason provided for these reductions is related to structural changes rather than performance issues. Dara Khosrowshahi's memo mentions that the organization has become more layered, requiring increased coordination and resulting in fragmented ownership. The plan includes reducing the number of managers by 20%, and halving micro-teams consisting of one or two individuals.

      A single sentence in the memo addresses the European context, stating that while everyone impacted has been notified, “except in countries where we will follow the required local process.” This statement serves a legal purpose rather than being merely courteous, as European Union regulations do not allow employers to notify individuals beforehand without adhering to specific legal requirements.

      The Collective Redundancies Directive mandates that employers consult with workers' representatives before any dismissals, aiming to reach an agreement first. Written information must include reasons for the layoffs, timing, the number and categories of employees affected, selection criteria, and details on how compensation is determined. Additionally, the relevant state authorities must be informed; redundancies can only take effect 30 days after notification, providing time to explore alternatives.

      Thus, Uber's wording signifies the legal confines within which it operates. In other regions, it has informed employees that the process is complete, whereas in Europe, it must initiate a dialogue that cannot be portrayed as finalized.

      The funds released by these layoffs are being redirected to autonomous vehicle initiatives. Uber has pledged more than $10 billion towards robotaxi partnerships, including a collaboration with Wayve in London. Analysts estimate the annual savings could range from $1.5 billion to $2 billion, though Bloomberg Intelligence cautions that increased spending on autonomous vehicles might consume much of this savings in the short term. The total employee count will drop to just under 30,000, approximately returning to its 2021 numbers.

      This retreat from Africa benefits competitors in Europe. Bloomberg identifies Bolt, based in Estonia, as Uber's main rival in Nigeria and TNW reports that Bolt has raised €220 million ahead of its IPO. In contrast, Bolt is not exiting the market; Uber started services in Lagos in 2014 but has since faced competition from Bolt and other local players.

      This move represents a strategic shift for Uber as it prioritizes investment in autonomy over geographical presence, while TNW has examined the growth strategies of the competitors who are opting to remain.