Uber reduces its workforce by 10% and ceases operations in Nigeria and Uganda.

      Uber is reducing its workforce by approximately 3,300 positions, which is about 10% of its total employees, and will cease operations in Nigeria and Uganda as it reallocates resources toward robotaxi initiatives. According to an internal memo, all impacted individuals have been informed, except in instances where local procedures apply. In the European Union, this means engaging in consultations with workers’ representatives and a mandatory 30-day waiting period after notifying the authorities.

      The announcement was made alongside the news reported by Bloomberg regarding the job cuts and the closure in Nigeria and Uganda. The rationale provided focuses on structural changes rather than performance issues. The memo from Dara Khosrowshahi highlights increased layers of management, excessive coordination, and fragmented ownership, leading to a 20% reduction in managerial roles. Additionally, micro-teams consisting of one or two individuals will be halved.

      A specific statement in the memo pertains to Europe, indicating that all affected parties have been informed “except in countries where we will follow the required local process.” This wording serves a legal purpose rather than being merely courteous. Employers in the European Union cannot notify employees ahead of time due to legal stipulations.

      The Collective Redundancies Directive stipulates the necessity for consultations with worker representatives aimed at reaching an agreement before any layoffs occur. Employers are required to provide written information, including the reasons for the redundancies, the timing, the number and types of workers affected, the selection criteria, and details on how compensation will be calculated.

      Subsequently, the competent public authority must be informed, and redundancies can only take effect no sooner than 30 days after notification, during which time alternatives may be considered.

      Consequently, Uber's statement delineates the distinction between its actions elsewhere, where notifications were completed, and in Europe, where it must initiate a dialogue rather than assume it is already finalized.

      The funds released through these cuts will be directed towards autonomy, with Uber committing over $10 billion to partnerships in the robotaxi sector. TNW has reported on a waitlist opened in London with Wayve. Analysts estimate potential annual savings between $1.5 billion and $2 billion, although Bloomberg Intelligence notes that increased spending on autonomous vehicles may offset much of these savings in the short term. The workforce will decrease to just below 30,000, returning to levels seen in 2021.

      The withdrawal from Africa benefits a competitor in Europe. Bloomberg has identified Estonia’s Bolt as Uber’s chief competitor in Nigeria, with TNW reporting that Bolt has raised €220 million in anticipation of an IPO. Unlike Uber, Bolt is not exiting the market. Uber launched in Lagos in 2014, but its market share has since been diminished by Bolt and more recent local entrants.

      This reflects the strategic trade-off made by Uber—prioritizing autonomy over geographic presence—while TNW has examined the expansion strategy of the competing brand that remains in the market.