Mizuho Securities has maintained an Outperform rating on Uber Technologies shares following the company’s announcement of a 10% workforce reduction, affecting approximately 3,300 roles. The cuts, described as Uber’s largest since 2020, are intended to streamline management layers and accelerate decision-making rather than target specific cost lines or margin improvements.
The reductions are expected to generate isolated annualized savings of $500 million to $600 million, with management indicating these funds will be reinvested into growth initiatives rather than boosting profitability. Mizuho anticipates the workforce adjustments to be largely finalized by the third quarter of 2026.
Uber’s shares were trading at $76.45 at the time of the announcement, up 1.61% on the day. The company’s market capitalization stands at $156 billion. Mizuho’s price target for Uber remains at $112, while the broader Wall Street consensus reflects a 32% upside potential based on average analyst targets.
Analysts at Guggenheim, BMO Capital, and Rosenblatt have also reiterated positive ratings on Uber, with price targets of $125, $119, and $100, respectively. The firm’s bullish outlook is underpinned by Uber’s $10 billion multi-year commitment to autonomous vehicle technology and strategic expansion via mergers and acquisitions, including a notable investment in Delivery Hero.
In operational updates, Uber launched autonomous rides in London using artificial intelligence from British startup Wayve. The service, currently operating with a licensed operator in the vehicle, marks London as Uber’s second European market for robotaxis, with plans to transition to fully driverless operations in the future. Additionally, Uber introduced live video streaming for teen rides, allowing parents to monitor trips via the driver’s phone camera, with nationwide rollout expected in the coming weeks.
