Uber, Samsung layoffs: Why major companies are cutting jobs despite strong business performance

A fresh wave of corporate restructuring is putting jobs under pressure, with ride-hailing giant Uber and electronics major Samsung announcing significant workforce changes despite both companies continuing to invest in future growth.

While Uber is set to cut around 3,300 jobs globally, Samsung India has reportedly asked around 80-100 executives to leave as it restructures its television and home appliance businesses. The moves highlight how companies are increasingly focusing on leaner operations, reducing management layers and controlling costs amid changing market conditions.

Uber to lay off around 3,300 employees

Ride-hailing giant Uber is set to lay off around 3,300 employees, or nearly 10 per cent of its workforce, as part of a major restructuring aimed at reducing management layers and simplifying its organisational structure.

The move is reportedly Uber’s biggest round of layoffs since the COVID-19 pandemic.

The job cuts are part of a broader efficiency drive under which Uber plans to reduce the number of managers, dismantle smaller teams and consolidate operations across fewer locations. CEO Dara Khosrowshahi told employees that the company’s rapid growth had created additional layers, coordination requirements and fragmented responsibilities.

The restructuring comes despite strong business performance. Uber recently reported a 22 per cent year-on-year increase in booking volume and an operating profit of $1.9 billion.

Khosrowshahi said the restructuring was being undertaken from a position of strength, with the company looking to redirect resources towards future growth opportunities rather than responding to an immediate business crisis.

Uber cuts back on fully remote work

Alongside the layoffs, Uber is also significantly reducing fully remote work. The company is asking most employees who currently work remotely to relocate to one of its offices.

Once the changes are implemented, only about 1 per cent of Uber employees are expected to remain designated as fully remote workers.

The company plans to concentrate global teams in major hubs, including San Francisco and New York, while regional and technology teams will be based at designated locations.

However, Uber is not ending its hybrid work model. Its existing policy requiring most employees to work from the office at least three days a week will remain in place. The latest move primarily affects employees who had previously been approved to work fully remotely.

Autonomous vehicles remain a key focus

Uber is seeking to strengthen its position in the autonomous vehicle market as competition in robotaxi services intensifies.

The company is investing in its platform for autonomous vehicles while preparing for competition from companies such as Waymo and Tesla. Uber is also continuing to invest in its delivery business and other growth areas.

Unlike several technology companies that have linked recent layoffs directly to artificial intelligence and automation, Uber has not cited AI as the reason for the latest workforce reduction.

Instead, the company has pointed to organisational complexity, management layers and the need to redirect resources towards future investments.

Samsung India begins layoffs

Meanwhile, Samsung India has reportedly begun laying off employees as the South Korean electronics giant restructures its television and home appliance businesses amid weaker consumer demand and pressure on profit margins.

Around 80-100 executives have so far been asked to leave the company, with the layoffs reportedly being carried out in batches.

The affected employees include director-level officials and team leaders at the headquarters, along with branch and area managers.

According to reports citing employees and industry executives, termination letters have been issued in recent days, with some employees reportedly being asked to leave without serving their notice periods.

Samsung is reportedly offering three months’ salary as severance, along with an additional month’s pay for every year of service.

Up to 25% of electronics sales workforce could be affected

Samsung’s electronics sales and marketing workforce comprises around 550-600 executives. Industry executives cited in reports have indicated that up to 25 per cent of this workforce, including off-roll employees hired through staffing agencies, could potentially be affected by the restructuring.

The current job cuts are focused on Samsung’s television and home appliance businesses.

A further round of workforce rationalisation could take place after Diwali, depending on the company’s performance during the crucial festive season.

Samsung smartphone business spared for now

Samsung’s smartphone division has been kept out of the immediate round of layoffs as the company expects sales to improve during the upcoming Diwali season.

However, the mobile business could be reviewed later depending on market conditions. Smartphones remain Samsung’s biggest business in India, accounting for around three-fourths of its local revenue.

The company is facing pressure from rising memory chip prices, a weaker rupee, higher raw material costs and slowing smartphone demand. Industry estimates cited in reports suggest smartphone volumes in India have declined 11-12 per cent year-on-year.

Samsung has also increased prices of some smartphone models by 5-10 per cent amid rising costs, while banking on festive demand to support sales.

Samsung consolidates operations

The layoffs come as Samsung works to streamline its operations in India. The company is consolidating its branch network, with several offices being merged, including those in Ranchi and Patna, Delhi and Gurgaon, and Punjab and Chandigarh.

The restructuring is expected to eliminate overlapping roles.

Samsung had earlier planned to merge the sales teams of its television and home appliance businesses to reduce overlapping functions and management layers. The proposed merger has reportedly been deferred to the December quarter.

Samsung India’s revenue from operations stood at around Rs 1.11 lakh crore in FY25, while its net profit rose 38 per cent to Rs 11,286 crore. Home appliances contributed around 11 per cent of the company’s sales, making the segment its second-largest category after smartphones.

More layoffs could follow

The restructuring at both Uber and Samsung reflects a broader shift in corporate strategy, with companies seeking to operate with leaner teams and fewer management layers while redirecting resources towards areas expected to drive future growth.

For Uber, the focus is increasingly on autonomous vehicles, delivery and other growth opportunities. For Samsung India, the immediate priority is improving efficiency across its television and home appliance businesses while navigating rising costs and changing consumer demand.

Both cases also underline how layoffs are no longer necessarily limited to companies facing severe financial distress. Businesses with strong revenues or profits are also restructuring their workforces to simplify operations, improve efficiency and prepare for changing market conditions.

As companies continue to reassess their organisational structures, further workforce reductions could emerge in sectors ranging from technology and consumer electronics to other industries undergoing rapid transformation.