Uber is cutting many of its 'micro-teams' and giving some middle managers more reports
Uber is reducing its number of 'micro-teams' and flattening its management structure to improve efficiency. This trend, often supported by AI-enabled workflows, allows managers to oversee larger teams and focus on high-level goals.
Why it matters
The shift reflects a broader corporate trend of using AI to replace middle management layers, fundamentally changing organizational design in the tech sector.
Uber CEO Dara Khosrowshahi announced plans to reduce the number of 'micro-teams.' Bloomberg/Getty Images Uber announced plans to lay off some managers and eliminate nearly half of its "micro-teams." It's part of the Great Flattening, as companies look to cut costs and trim managerial layers. Eliminating middle managers can result in fewer career development opportunities for employees. As Uber cuts jobs, it's targeting some of the smallest teams in its org chart. In a memo announcing layoffs affecting about 10% of staffers on Wednesday, CEO Dara Khosrowshahi said the ride-hailing giant would trim management layers and cut the number of "micro-teams" — those with only one or two direct reports — by nearly half. "The outcome is a simpler org chart geared toward building versus managing," Khosrowshahi wrote. Uber's focus isn't simply on small groups of workers. It's groups that come with their own management layer.
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