Lyft is reportedly slashing 1,200 jobs — at the least 30% of its employees. It is struggling to maintain up with Uber.
- Lyft plans to chop 1,200 jobs in an try to scale back prices, in response to the Wall Avenue Journal.
- The cuts come days after Lyft’s new CEO, David Risher, formally assumed the position.
Trip-hailing firm Lyft is planning to chop 1,200 jobs, the Wall Avenue Journal reported Friday, citing folks aware of the corporate’s plans.
The newest spherical of cuts might have an effect on greater than 30% of the corporate’s 4,000-person workforce, the Journal famous. Drivers aren’t counted as workers at Lyft.
It is one other spherical of reductions for the corporate that final minimize 700 workers in November. And it is one more huge firm saying a wave of layoffs as worries over the financial system proceed to mount.
The cuts come simply days after David Risher took the helm as Lyft’s new CEO and will assist the corporate scale back prices by 50%, the Journal mentioned.
In a memo to workers despatched Friday morning that has since been posted on Lyft’s web site, Risher famous that the corporate intends to make use of the financial savings to “spend money on aggressive pricing, quicker pick-up occasions, and higher driver earnings.”
Within the memo, Risher mentioned workers would obtain an e mail with particulars of their employment standing on April 27 at 8:30 am Pacific time.
A spokesperson for Lyft advised Insider that the corporate wouldn’t be capable to verify the variety of affected workers till subsequent week. Nevertheless, in an emailed assertion, the spokesperson mentioned that “David has made clear to the corporate that his focus is on creating an excellent and inexpensive expertise for riders and enhancing drivers’ earnings.”
The spokesperson added, “to take action requires that we scale back our prices and construction our firm in order that our leaders are nearer to riders and drivers. It is a onerous determination and one we’re not making evenly. However the end result will likely be a far stronger, extra aggressive Lyft.”
Lyft had been battling discontented workers and buyers forward of Risher’s appointment final month.
The corporate has additionally been scrambling to compete with rivals like Uber, to which it ceded market share through the pandemic after being sluggish to introduce driver-friendly options and bonuses, the Journal reported. The corporate’s inventory is down greater than 70% prior to now yr. Uber, in the meantime, is down solely round 2% over the previous yr.
Do you’re employed at Lyft and have a narrative to share? Contact Lakshmi Varanasi at [email protected] or on encrypted messaging app Sign at 262-408-1907.