HomeAll NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Uber Cuts 10% of Customer Service Jobs, Citing AI Investment

Created at 22 Jul · 11:56 PM1 source↑ Market-relevant
IN SHORT

Uber is reducing its customer service workforce by 10%, a move that comes as the company significantly increases its investment in artificial intelligence. CEO Dara Khosrowshahi stated that AI tools are enhancing employee productivity, leading to a slowdown in hiring.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

10%customer service jobs cut
10%code changes produced by AI agents
31% to 38%expected second-quarter EPS growth
$13.2 billionfirst-quarter revenue
25%gross bookings increase in Q1
34,000Uber corporate employees worldwide
less than 1%affected roles in People and Places division

Who's Involved

Uber
company cutting customer service jobs and investing in AI
Dara Khosrowshahi
Uber CEO discussing AI impact and hiring strategy
Balaji Krishnamurthy
Uber CFO on increased AI spending
Praveen Neppalli Naga
Uber Chief Technology Officer on AI budget
Jill Hazelbaker
President and Chief Corporate Affairs Officer at Uber
Uber Cuts 10% of Customer Service Jobs, Citing AI Investment

↳ Why This Matters

The move signals a significant shift in how companies like Uber are integrating AI, potentially leading to widespread job displacement in customer service and other roles as automation advances. It also highlights the strategic financial decisions companies are making to prioritize AI development.

Key facts

  • Uber is cutting 10% of its customer service jobs.
  • The company is increasing investment in artificial intelligence.
  • CEO Dara Khosrowshahi indicated that AI tools are boosting employee productivity.
  • Uber is slowing its hiring pace to allocate more resources to AI.
  • Approximately 10% of Uber's code modifications are now generated by AI agents.
  • The People and Places division, responsible for HR and recruitment, saw job cuts.

Uber is reducing its customer service workforce by 10% as it significantly increases investment in artificial intelligence, according to reports. CEO Dara Khosrowshahi stated on the company's first-quarter earnings call that AI tools are enhancing employee productivity, leading to a slowdown in hiring.

Khosrowshahi indicated that approximately 10% of Uber's code changes are now produced by autonomous agents, with human employees still reviewing the code. He noted that AI has been used for years in areas like ride pricing and driver matching, but employees across various departments, including legal and marketing, are now using internal AI tools, which he described as giving "employees with superpowers."

The company is increasing its AI spending, partly funded by hiring fewer employees. CFO Balaji Krishnamurthy mentioned that Uber had underestimated the impact of AI tools when budgeting at the end of 2025, and CTO Praveen Neppalli Naga noted that the entire 2026 budget for Claude Code was spent in just four months.

Separately, Uber's People and Places division, which oversees human resources, recruitment, and culture, experienced job cuts on June 3. A company spokesperson stated these cuts were unrelated to AI, though reports highlight that nearly 95% of engineers use AI tools monthly and about 70% of committed code is AI-generated. Jill Hazelbaker, promoted to president and chief corporate affairs officer, cited organizational complexity and fragmentation as reasons for the restructuring within the People team.

Frequently asked questions

Uber is cutting 10% of its customer service jobs.

The company cites increased investment in AI and the productivity gains it offers, leading to a slowdown in hiring and restructuring in some departments.

AI is used for ride pricing, matching drivers with passengers, and increasingly for coding, with about 10% of code changes now AI-generated. Employees across various departments are using AI tools.

Uber reported $13.2 billion in revenue and 25% growth in gross bookings for the first quarter. The company expects second-quarter EPS to grow between 31% and 38%.

What Happens Next

01Uber's second-quarter EPS is expected to grow between 31% and 38%.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • Is AI Making Inflation Better or Worse?
    22 Jul · 3:26 PM

How It Developed

Uber is cutting 10% of its customer service jobs.
The company is increasing investment in AI.
CEO Dara Khosrowshahi stated that AI tools are enhancing employee productivity.
Uber is slowing hiring to fund AI investments.
Roughly 10% of Uber's code changes are produced by autonomous agents.
Uber's People and Places division absorbed cuts on June 3.
Affected roles represent less than 1% of Uber's 34,000 corporate employees.

Sources

T1
Uber Cuts 10% of Customer Service Jobs, Citing ‘Embrace’ of AIBloomberg
T2
Uber Slowing Hiring to Fund AI Investment - Business Insiderbusinessinsider.com
T2
Tech Layoffs 2026 Hit 149,935: Uber Cuts HR Days After AI Drained Its ...techtimes.com

Related Stories

Travis Kalanick's robotics firm Atoms raises $1.7B led by Andreessen Horowitz
22 Jul · 7:25 PM
Alphabet Plans $80 Billion Stock Sale for AI Infrastructure
22 Jul · 9:56 PM
Google Reports Negative Free Cash Flow Amidst Soaring AI Spending
22 Jul · 11:31 PM
AI memory crunch forces carmakers to consider price hikes
22 Jul · 4:51 PM
US Army exhausts annual AI token supply, faces usage limits
22 Jul · 1:41 PM