Uber CEO, Dara Khosrowshahi speaks during the “Intentional Equity in Sustainability” conversation at the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week in San Francisco, California, on November 15, 2023.

Andrew Caballero-Reynolds | AFP | Getty Images

Uber CEO Dara Khosrowshahi last week told employees “it is what it is” at a heated all-hands meeting after the company announced it would increase its in-office requirements and change benefits.

The ride-sharing company informed employees on April 28 that they will be required to come into the office three days a week, up from two, starting in June, CNBC reported. Uber also changed the eligibility for its month-long paid sabbatical benefit, raising the requirement from five years at the company to eight years. The company also informed some employees who had been previously approved for remote work that they would be required to start coming in.

Khosrowshahi defended the policy changes against feisty employees who peppered him with questions and criticism at the company meeting and on Uber’s internal forum, according to audio and correspondence obtained by CNBC. 

“If you’re here for a sabbatical and this change causes you to change your mind, it is what it is,” Khosrowshahi told employees at the April 29 all-hands meeting. “I’m sorry about that. The reason we want you to be here is the impact on the company. The learning here. We recognize some of these changes are going to be unpopular with folks. This is a risk we decided to take.”

The clash inside Uber highlights the growing tension between tech workers and tech management. Workers for years were drawn to Silicon Valley for its idealistic values, perks and job security, but since 2022, tech companies have cut back on benefits and conducted on-going rounds of layoffs.

Google, for example, informed some employees who were previously approved for remote work that they needed to return to the office if they want to avoid getting caught in layoffs, CNBC reported last month.  

Being in person more frequently is better for collaboration, innovation and company culture, Uber told CNBC in a statement.

“It’s hardly a surprise that not everyone was thrilled about changes to remote work and sabbatical policies,” the company said. “But the job of leadership is to do what’s in the best interest of our customers and shareholders.”

After Uber announced the changes in a memo last week, employees flooded the company’s internal Slido forum with questions and comments.

“The Slido essentially has been invaded by questions about the changes we’ve made,” Khosrowshahi said at the beginning of meeting, adding that the questions had been consolidated.

“How is five years of service not a tenured employee? Especially when burnout is rampant in the org,” a highly-rated comment from one employee said, adding that they had already paid for a trip for their upcoming sabbatical.

Khosrowshahi said Uber is a “Gen-AI powered company” that needs to be on its A game. He said employees should be more interested in learning and their impact on the company than on its benefits, which spurred more employee pushback.

Some questions asked if Uber made policy changes in hopes that it would force some people to quit.

“It has nothing to do in terms of a need to drive attrition or layoffs,” said Khosrowshahi, adding that the changes had nothing to do with cost cutting. “None of that is planned. The business is operating really, really well. But listen, good isn’t good enough for us. We have to be great as a company.”

Uber will report its first quarter financial results Wednesday.

Nikki Krishnamurthy, Senior Vice President, Chief People Officer of Uber.

Courtesy: Uber

After the all-hands meeting, Uber Chief People Officer Nikki Krishnamurthy sent out a memo saying some employee comments on the meeting broadcast “crossed the line into unprofessional and disrespectful.” 

“That’s not O.K., and we will be speaking with the employees who made them,” Krishnamurthy wrote, according to the memo which CNBC viewed. “Through good times and bad, we are open with each other. Yet when we see behavior like this, it makes it harder to continue being open in the same way.”

Uber in 2022 established Tuesdays and Thursdays as “anchor days” where most employees must spend at least half of their work time in the company’s office and the rest of the week could be spent working remotely for “individual productivity,” according to a now-removed blog post. 

“Our business also exists in the real world, on the streets of thousands of cities, and it’s important we stay connected to the places we serve,” Krishnamurthy wrote at the time.

On the company forum, several employees questioned the change to three days in-office, citing insufficient meeting rooms and work space, according to comments viewed by CNBC.

“It’s a challenge every anchor day to even find a place to sit with your team,” one employee comment said. 

The goal of anchor days is “to get as many people in the office as possible,” Khosrowshahi said, adding that Uber will be keeping track of employee attendance.

Krishnamurthy addressed the concerns about office space at the company meeting, announcing that Uber is adding 700,000 square feet of office space between its San Francisco Mission Bay and Seattle offices. The additional space will go toward more meeting rooms and cafeterias, said Krishnamurthy, adding the retrofitting will be in construction through 2026.

WATCH: Uber raises in-office requirement to 3 days, claws back remote workers