Uber Technologies said it will eliminate about 3,300 jobs, or roughly 10% of its global workforce, as Chief Executive Dara Khosrowshahi moves ahead with a broader effort to simplify the company’s organization. UBER shares rose 2.1% in early premarket trading after the announcement.

In a company-wide message, Khosrowshahi said the goal is to bring dispersed teams together and move more employees into a smaller number of primary office locations.

“Make Uber simpler and faster and create more capacity to invest in our future,” he said. Workers affected by the cuts were informed before the broader announcement was sent out.

The restructuring is centered on reducing management layers. Uber plans to cut middle-to-lower management roles by 20%, with the company aiming for a leaner organizational structure.

Remote work will also be sharply reduced. Going forward, fewer than 1% of Uber employees will remain remote. Khosrowshahi said the benefits of in-person collaboration “are clearer than ever in our post-Covid world.”

Uber had already been pushing for more office attendance earlier in the year, including by expanding its New York City office space. The latest move formalizes that direction as company policy and reflects how the company is adjusting its operating model after years of rapid expansion.

Khosrowshahi said the company is “performing so well” and noted that Uber’s revenue has “nearly tripled” over the past five years. He said the job cuts are not a response to weak financial performance, but rather to the organizational complexity created by years of growth.

Since its first rides in San Francisco in 2009, Uber has grown into a global platform, and that expansion has brought additional layers of management and coordination.

Robotaxi investment strategy

The restructuring also comes as Uber prepares for a major strategic focus on autonomous vehicles. The company has set aside $10 billion for the development of its autonomous taxi business over the next several years.

Uber has been expanding beyond ride-sharing into a broader marketplace ecosystem, and analysts are watching how it may fit into the autonomous transportation market as the technology matures and partnerships continue to build.

BMO Capital maintained an Outperform rating and a $119 price target for UBER on Monday, citing the company’s developing AV infrastructure and expanding partnership network. Analyst Brian Pitz said this positions Uber as the leading mobility ecosystem for autonomous vehicle makers.

Analyst sentiment

Wall Street sentiment remains broadly positive. UBER has a Strong Buy consensus among analysts, with price targets ranging from $70 to $150.

Rosenblatt recently initiated coverage with a Buy rating and a $100 target, while Citizens maintained a Market Outperform rating with the same target, pointing to encouraging data from Waymo’s ride volume growth and autonomous taxi network expansion.

Nevada’s Transportation Authority has also approved Uber for 1,000 commercial autonomous vehicles, alongside similar approvals for Tesla and Waymo.

Uber’s market capitalization is currently $153.5 billion, and revenue has increased 16.7% over the trailing 12-month period. The stock was trading near $75.24 ahead of Wednesday’s premarket session.