Gotrade News - Uber is trimming a major support division while pouring fresh capital into autonomous vehicles. The two moves arrived close together this week.
The ride-hailing company is reshaping its corporate structure under new leadership. It is also widening its self-driving footprint through a large startup commitment.
Key Takeaways
- Uber is cutting about 23% of its People and Places division, affecting under 1% of staff.
- The company committed nearly $500 million to self-driving startup Nuro.
- UBER trades near $73.25, down about 20% year to date, with a Moderate Buy consensus.
The cut targets Uber's People and Places division, which covers HR, recruiting, and facilities. It affects less than 1% of the company's roughly 34,000 employees.
Senior roles make up a disproportionate share of the reductions. The division was described as overly complex with overlapping responsibilities.
The reorganization is led by newly promoted President Jill Hazelbaker. CEO Dara Khosrowshahi backed the move to simplify the unit.
According to Barchart, Uber said AI did not drive the layoffs. The company framed the change as a structural cleanup rather than an automation play.
AI Adoption And Code Generation
Still, AI is reshaping how Uber operates internally. The company used its entire 2026 AI coding budget in just four months.
Uber reports about 95% monthly AI-assistant adoption among its engineers. Roughly 10% of its code is now AI-generated, according to the company.
Investors can track Uber's structural shifts and broader trajectory on the UBER stock page. The reorganization reflects a leaner internal posture under fresh leadership.
Nuro Bet And Stock Context
Separately, Uber has committed nearly $500 million to self-driving startup Nuro. As reported by Quartz, the deal deepens Uber's autonomous-vehicle bets.
The investment signals continued conviction in driverless mobility. It adds to a growing roster of autonomy partnerships across the platform.
On the market side, UBER is down about 20% year to date. The stock recently traded near $73.25, up about 2.2% on the day.
Analyst consensus sits at a Moderate Buy with an average target near $107. That gap suggests room for upside if execution holds.
Fundamentals stayed firm in the latest quarter for the company. Q1 gross bookings reached $53.7 billion, up 25% year over year.
Revenue came in at $13.2 billion, while adjusted EPS of $0.72 beat estimates. Q2 EPS guidance was set at $0.78 to $0.82.
The People and Places reduction concentrates its impact on a single corporate function rather than frontline operations. That focus limits the headcount footprint to under 1% of the roughly 34,000-person workforce.
Leadership framed the overlapping responsibilities inside the division as a drag on speed. Consolidating those duties is meant to remove duplication across HR, recruiting, and facilities teams.
Hazelbaker's promotion to President places the restructuring under newer executive oversight. Khosrowshahi's backing signals that the change carries top-level support rather than a localized adjustment.
The AI figures sit alongside the cuts but were kept separate in Uber's explanation. Burning the full 2026 coding budget in four months underscores how fast internal AI usage scaled.
With about 95% of engineers using AI assistants monthly, the tooling is now embedded in daily work. The roughly 10% AI-generated code share shows the shift moving from pilot to production.
The Nuro commitment of nearly $500 million extends Uber's autonomous strategy beyond its own fleet. Backing an external startup spreads its driverless exposure across multiple partners.
The 20% year-to-date decline frames the stock against a Moderate Buy consensus and a target near $107. Investors weighing that gap can review the metrics on the UBER stock page.
Together, the layoffs and Nuro bet show two priorities at once. Uber is tightening overhead while still funding long-term autonomy ambitions.
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