Lyft is shedding 26 % of workers

Lyft had warned of impending layoffs final week, and now it is taking motion. The ridesharing firm is chopping 1,072 jobs, or about 26 % of its workers. It is also scaling again hiring and can scrub 250 open roles. The choice will carry severance and advantages prices of as much as $47 million within the second quarter, however Lyft believes the financial savings will assist with ‘enhancements” for drivers and passengers. Extra particulars are coming throughout an earnings name on Might 4th.

The agency had already laid off 13 % of its group in November final yr. This newest choice additionally follows simply weeks after co-founder Logan Inexperienced stepped down as CEO following a tough earnings name. Inexperienced stated the corporate must increase spending to stay aggressive with Uber. Whereas neither Lyft nor Uber has turned a revenue on an annual foundation, Uber was worthwhile final quarter due to investments in different companies.

New Lyft chief (and former Amazon govt) David Risher, who began this month, has known as for streamlined enterprise and a renewed give attention to the “wants of riders and drivers.” He is a part of a broader govt shakeup that sees president and co-founder John Zimmer transfer to the board of administrators, the place Inexperienced nonetheless has a job.

Lyft is way from alone. Quite a few tech giants have laid off employees in 2023, in lots of instances on account of a tough international financial system. Nonetheless, its rival Uber has to this point prevented extreme cuts in current months. Layoffs.fyi says Uber laid off about 60 engineers in Lithuania final fall, and 150 Uber Freight staff in January. This does not assure that Uber will keep away from bother, but it surely suggests the journey hailing big is feeling much less stress than Lyft.