Uber CEO Says 3,300 Job Cuts Could Lower Ride Prices

Uber's CEO says savings from cutting 3,300 corporate jobs and falling insurance costs will be reinvested into lower prices and better service.

Uber eliminated about 3,300 corporate jobs — roughly 10% of its workforce — in its largest round of cuts since the pandemic, aiming for a flatter management structure and less complexity. CEO Dara Khosrowshahi told the Goldman Sachs Communacopia + Technology Conference that the resulting savings will flow back to riders: "We are going to take the savings there and essentially reinvest it back in the business, lowering prices, improving selection, and continuing to invest in our growth program," Fortune reports.

Layoffs are usually read as a warning sign, but Khosrowshahi cast the cuts as a customer win, saying savings would mean lower prices, special offers, and programs like Wait & Save, which discounts rides for passengers willing to wait longer. Fortune notes tech layoffs have recently been viewed positively in some cases as AI helps companies extract more from each worker — Block's stock jumped roughly 24% after announcing 40% staff cuts. Khosrowshahi said AI has produced "real tailwinds as it relates to productivity."

According to Fortune, Uber's U.S. mobility insurance costs rose more than 50% per ride over recent years through the first quarter of 2025, but that trend has now reversed, and some insurance savings are being reinvested into lower prices. The cuts also come as Alphabet's Waymo threatens Uber's rideshare business: the partnership has grown strained, Waymo told Uber in July it plans to run rides through its own app alongside Uber starting in 2028, and last week Waymo launched autonomous rides in Nashville with competitor Lyft. Shares jumped nearly 2% on the layoffs but are down about 12.5% year-to-date.

The reinvestment promise does little for the 3,300 employees leaving the company, and Fortune reports Uber is one of several firms cutting this month, with more than 5,000 workers laid off across 13 companies so far in September — well below June's peak of over 26,000 across 50 companies. Not every corporate move is a retrenchment: Troy Today reports that Troy University's Sorrell College of Business will launch its Corporate Partnership Program on Sept. 22 with 17 partners, linking regional businesses to students through internships that can lead to full-time jobs.