Lyft laying off nearly 700 workers
Layoffs at ride-sharing company make up 13% of workforce
Uber, Lyft driver details current struggles amid record gas prices
Chris Gerace, a part-time Uber and Lyft driver, argues that the temporary surcharge Lyft and Uber are providing in an effort to help drivers account for the higher cost is not enough.
Lyft announced Thursday that it is slashing its headcount by 13%.
Approximately 683 employees will lose their jobs in the layoffs, which co-founders Logan Green and John Zimmer said in a memo will "impact every organization in the company." The ride-share company had 5,000 employees at the end of June, according to its most recent quarterly filing.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 16.77 | +0.20 | +1.21% |
The layoffs were "based on deprioritization initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory," the co-founders said. They pointed to "several challenges playing out across the economy," including a looming "probable" recession and rising insurance costs.
Lyft has announced that it is slashing its headcount by 13%. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
In September, Lyft spokesperson Ashley Adams told FOX Business that the ride-share company was "pausing hiring for all U.S.-based roles through the end of the year." The news of that move was first reported by the New York Post.
LYFT FREEZING US HIRING FOR REMAINER OF YEAR
The Lyft employees affected by the layoffs announced Thursday will receive at least 10 weeks of pay, with those who worked at the company for more than four years getting an additional four, according to the memo. They will also get health care through April, career assistance and accelerated equity vesting.
In September, Lyft spokesperson Ashley Adams told FOX Business that the ride-share company was "pausing hiring for all U.S.-based roles through the end of the year." (Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
Lyft expects the layoffs to come with roughly $27 million to $32 million in costs "related to employee severance and benefits costs," it said in an SEC filing.
STRIPE SLASHES 14% OF WORKFORCE
The company also has plans to sell its first-party vehicle service business amid its cost-cutting efforts, Green and Zimmer said. Workers with roles in that segment are expected to get positions with the company that takes it over, according to the memo.
"We are not immune to the realities of inflation and a slowing economy," the Lyft co-founders said. (iStock / iStock)
"We are not immune to the realities of inflation and a slowing economy," the Lyft co-founders said. "We need 2023 to be a period where we can better execute without having to change plans in response to external events – and the tough reality is that today’s actions set us up to do that."
Lyft’s outlook for its third quarter remains unchanged, according to the company. It is scheduled to release its third-quarter financial results Monday.