- According to an email from CEO David Risher, Lyft confirmed it would be “significantly reducing” its headcount starting next week.
- The layoffs come a week into Risher’s tenure and were hinted at at a previous council meeting.
- The Wall Street Journal reported that the layoffs would affect at least 1,200 employees, around 30% of the company’s 4,000 employees.
A traveler arriving at Los Angeles International Airport seeks ground transportation during a nationwide day of action in Los Angeles, California, U.S., to demand that ride-hailing companies Uber and Lyft obey California law and grant drivers “basic labor rights.” , 2020.
Mike Blake | Portal
Ride-sharing app Lyft will be laying off a significant number of employees a week after new CEO David Risher’s tenure begins, the company said on Friday.
A Lyft spokesman declined to comment on the exact number of cuts, but the Wall Street Journal reported that the company will lay off at least 1,200 workers, or about 30% of its 4,000 employees.
“I confirm that we will be significantly reducing the size of the team as part of a reorganization to focus on better serving the needs of riders and riders,” Risher told Lyft employees in an email posted on the blog published by Lyft. Risher’s appointment was announced in March and took effect on April 17.
Lyft stock was flat on the news. The company previously reduced its headcount in November, cutting 700 jobs, or about 13% of the workforce.
“We need to be a faster, flatter company where everyone is closer to our riders and riders in order for us to serve that purpose,” Risher wrote Friday.
Risher, a former Amazon executive, told employees at a city hall a few weeks ago that layoffs were imminent.
Lyft has struggled since its IPO in 2019, as its main competitor Uber leads in terms of market share and market cap. Lyft debuted at $72 and is now trading below $10.
“David has made it clear to the company that his focus is on creating a great and affordable experience for drivers and improving driver revenue,” a Lyft spokesperson told CNBC. “It’s a difficult decision that we don’t take lightly.”
Tech layoffs started in earnest in late 2022 and continued into the new year. Earlier this week, Meta conducted a previously announced round of cuts. According to layoff tracker Layoffs.fyi, Amazon, Google, Microsoft and many other tech companies laid off a total of over 172,000 employees in 2023.
Lyft said the reorganization will not affect previously issued guidance. The company is expected to report first quarter 2023 results on May 4.
REGARD: Corporate restructuring at Lyft