Uber is cutting 23% of jobs in its People and Places division, affecting senior-level roles in HR, recruitment, and workplace operations. The restructuring, led by newly promoted President Jill Hazelbaker, aims to streamline organizational structure. But the company faces a bigger issue: spiraling AI costs. Uber spent its entire 2026 AI budget in just four months. The company now caps employee AI spending at $1,500 monthly and launched a tracking dashboard. While Uber denies the layoffs are AI-driven, the simultaneous cost controls suggest the technology's expensive impact is reshaping how the company operates and staffs itself.

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