Uber imposed a $1,500 monthly spending cap on AI tools per employee and per agentic coding tool starting June 2 to control rising AI expenses [1]. The limits can be exceeded only with permission. Usage is monitored through an internal dashboard accessible to employees [1].
The company revealed earlier in April it exhausted its full 2026 AI budget within the first four months of the year, leading to tighter controls [1, 2]. Uber’s Chief Technology Officer had previously encouraged extensive AI use among staff, including competitive leaderboards to boost adoption [1]. Despite the push, CEO Andrew Macdonald expressed skepticism about AI’s ability to drive new consumer features, saying "it’s very hard to draw a line between AI usage and new consumer features" [1].
On June 3, Uber announced it cut 23% of jobs in its people division, which includes recruitment and human resources teams [2]. The layoffs represent well under 1% of Uber’s total 34,000-employee workforce [2]. CEO Dara Khosrowshahi said the changes were needed to "maximize the effectiveness of the People team and the enormous potential ahead of us" [2].
Jill Hazelbaker, Uber’s recently promoted president and chief corporate affairs officer, described the reductions as part of an effort to build "a more connected, modern, operationally excellent organization." She added some business segments "have become complex and fragmented, with overlapping responsibilities, unclear ownership, and teams operating too far from the businesses and partners they support" [2].
The cuts follow Hazelbaker’s promotion around May and signal Uber’s push toward operational simplicity and efficiency across corporate functions [2]. The company is now tracking AI spending closely and limiting it after early 2026 budget overruns [1, 2].
