Earlier this month, the rideshare company said it was eliminating 10% of its workforce, or about 3,300 people, in its largest round of cuts since the pandemic. Khosrowshahi said at the time the layoffs would allow for a flatter management structure and less complexity, especially useful at a time when autonomous taxi companies like Alphabet-owned Waymo increasingly threaten its rideshare business in some markets. 

He also said the layoffs would translate into “savings that we intend ​to reinvest in growth, innovation, and the capabilities that will matter most over the coming years.” 

Late last week, Khosrowshahi revealed more details about how these savings could show up. Speaking at the Goldman Sachs Communacopia + Technology Conference, the Uber CEO said savings from the company’s thousands of layoffs could translate into lower prices, among other improvements.

“We are going to take the savings there and essentially reinvest it back in the business, lowering prices, improving selection, and continuing to invest in our growth program,” he said.

Uber did not immediately reply to Fortune’s request for comment.

Uber’s commercial insurance costs for years outpaced inflation—it said its U.S. mobility insurance costs increased by more than 50% per ride over the past few years through the first quarter of 2025—but Khosrowshahi said that trend has now reversed. Uber is now reinvesting some of those insurance savings into lower prices for consumers, he said. 

Those savings, coupled with a “barbell strategy” that uses excess margins from higher-end products like Uber Black to invest in lower-cost offerings, could mean cheaper rides for customers or more ways for customers to save with special offers. One example is Uber’s Wait & Save program, which gives riders a discount if they are willing to wait longer for a pickup.

Shares of the company’s stock jumped nearly 2% after it announced layoffs earlier this month. The company also reported a double-digit increase in year-over-year revenue and its highest jump in first-time users over the past year compared with the same period over the past five years.

Still, the company’s stock is down about 12.5% year-to-date and some analysts have flagged threats to its rideshare business including increasing competition from autonomous vehicle companies in the future. Although the company has an exclusive partnership with Waymo in Austin and Atlanta, the two companies’ relationship has grown strained and Waymo told Uber in July it plans to offer rides through its own app alongside Uber starting in 2028. 

Last week, Waymo started offering autonomous rideshare in Nashville through a partnership with Uber competitor Lyft.

Uber is only one of several companies that have conducted layoffs this month, according to Layoff.fyi. In all, more than 5,000 workers at 13 companies have been laid off in September so far. That compares with the most recent peak in June, when more than 26,000 workers were laid off across 50 companies.

Although layoffs are often seen as a sign of slowing growth or financial trouble, tech company layoffs have recently been viewed positively in some cases as AI is increasingly helping companies get more out of every worker.

Khosrowshahi himself said at the Goldman Sachs event last week that AI has partly led to “real tailwinds as it relates to productivity.”

Some companies have gone even further. Block, the fintech run by CEO Jack Dorsey, saw its stock jump roughly 24% earlier this year when it announced it was cutting 40% of its workforce in a push for AI-fueled efficiencies. 

Yet, at times, these deep cuts have not always gone according to plan. After Meta eliminated 10% of its employees earlier this year and moved 7,000 employees, some of which were previously managers, onto a new AI-focused team, it recently asked some of them to go back to manager roles.