Uber lays off 10% of customer service staff, citing AI shift

Uber has laid off 10 percent of its customer service staff, replacing them with artificial intelligence tools. The cuts affect approximately 200 employees out of the company's 2,000-person customer service team. The layoffs were announced internally in early August 2023, according to a company spokesperson. Uber stated that the move is part of a broader effort to streamline operations and reduce costs. The affected workers are based in various locations, including the United States, the Philippines, and India. Uber's customer service team has been gradually shrinking over the past year as the company automates more support functions. The company said it will offer severance packages and job placement assistance to those let go. This decision underscores the growing trend of companies using AI to handle routine customer inquiries, which can lower expenses but also raises concerns about job displacement. Uber expects the AI system to handle a significant portion of simple requests, such as lost items or fare adjustments, allowing human agents to focus on more complex issues. The company did not specify a timeline for the full rollout of the AI tools.