HomeUber HR to Exhaust Annual Budget in 4 Months, Cuts Staff; Official Denies AI Link
Uber has initiated a significant overhaul of its human resources division, led by new president Jill Hazelbaker. The restructuring involves a 23% workforce reduction within the department to optimize operational efficiency.
CEO Dara Khosrowshahi clarified in an internal memo that the goal is to enhance team effectiveness. A company spokesperson noted that the layoffs represent less than 1% of Uber’s total workforce of 34,000 employees.
Clarifies Layoffs Are Not AI-Driven
Addressing concerns about automation, Uber confirmed the cuts are unrelated to AI adoption. Hazelbaker explained that certain HR functions had become overly complex and misaligned with business needs.
Management identified overlapping duties and unclear accountability as barriers to growth. The restructuring aims to establish a more collaborative, modernized, and high-performing organizational structure.
AI Budget Exhausted Early Despite Cost-Cutting
While distancing the layoffs from technology, Uber’s AI spending has drawn attention. Internal reports indicate that heavy employee usage depleted the entire 2026 AI project budget in just four months.
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Uber has initiated a significant overhaul of its human resources division, led by new president Jill Hazelbaker. The restructuring involves a 23% workforce reduction within the department to optimize operational efficiency.
CEO Dara Khosrowshahi clarified in an internal memo that the goal is to enhance team effectiveness. A company spokesperson noted that the layoffs represent less than 1% of Uber’s total workforce of 34,000 employees.
Clarifies Layoffs Are Not AI-Driven
Addressing concerns about automation, Uber confirmed the cuts are unrelated to AI adoption. Hazelbaker explained that certain HR functions had become overly complex and misaligned with business needs.
Management identified overlapping duties and unclear accountability as barriers to growth. The restructuring aims to establish a more collaborative, modernized, and high-performing organizational structure.
AI Budget Exhausted Early Despite Cost-Cutting
While distancing the layoffs from technology, Uber’s AI spending has drawn attention. Internal reports indicate that heavy employee usage depleted the entire 2026 AI project budget in just four months.
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On September 2, Jakub Pachocki, OpenAI’s Chief Scientist, addressed public concerns on X regarding the AI model Astra, clarifying claims that it operates without oversight and lacks transparent reasoning.Why the Controversy Erupted: Deep Recurrence O
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