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

      Uber is eliminating approximately 3,300 positions, amounting to around 10% of its workforce, and is also ceasing operations in Nigeria and Uganda as it reallocates resources towards robotaxis. An internal memo indicates that all individuals impacted have been informed, except where local procedures must be followed; in the EU, this includes consultation with employee representatives and a requisite 30-day waiting period after notifying authorities.

      The announcement of the layoffs highlights structural reasons rather than performance issues. Dara Khosrowshahi’s memo mentions an increase in layers, a need for greater coordination, and fragmented ownership, noting that the changes will reduce the number of managers by 20%. Additionally, micro-teams consisting of one or two members will be cut by half.

      A specific line in the memo addresses Europe directly, stating that everyone affected has already been notified, "except in countries where we will follow the required local process." This language serves to clarify legal obligations rather than provide courtesy. According to EU regulations, it is not permissible for an employer to notify individuals before adhering to mandated procedures.

      The Collective Redundancies Directive necessitates that employers consult with employee representatives to seek an agreement before making any layoffs. Information must be provided in writing, detailing reasons, timing, the number and categories of affected employees, selection criteria, and how compensation is determined. Additionally, the state must be informed, and redundancies cannot take effect sooner than 30 days after the competent public authority has been notified, allowing time for exploring alternatives.

      Thus, Uber’s statement delineates a distinction: outside Europe, it has communicated completion, but within Europe, it must engage in a discussion that can't be viewed as finalized.

      The funds released from these layoffs are intended for investment in autonomous technology. Uber has pledged over $10 billion to partnerships focused on robotaxi development and has opened a waitlist in London in collaboration with Wayve, according to TNW. Analysts estimate annual savings between $1.5 billion and $2 billion, though Bloomberg Intelligence warns that increased spending on autonomous vehicles may consume much of these savings in the short term. This action brings the company’s headcount down to just under 30,000, approximately its level from 2021.

      Uber’s exit from the African market could benefit a European competitor. Bloomberg identifies Estonia’s Bolt as Uber’s primary rival in Nigeria, noting that it recently raised €220 million in preparation for an IPO. In contrast to Uber, Bolt is maintaining its presence in the region. Since Uber commenced operations in Lagos in 2014, its market share has diminished due to competition from Bolt and newer local entrants.

      This signifies the strategic shift Uber is making, trading geographical presence for advancements in autonomy, while TNW has explored the expansion strategy of its competitor that remains.