Lyft is said to have cut 1,200 jobs, or 30% of its workforce

• Lyft plans to cut 1,200 jobs in an effort to cut costs, according to the Wall Street Journal.
• The cuts come days after Lyft’s new CEO, David Reischer, officially took over.
• Lyft has lost market share to rival Uber during the pandemic.

Ride-hailing firm Lyft plans to cut 1,200 jobs, The Wall Street Journal reports mentioned Friday, citing people familiar with the company’s plans.

The latest round of cuts could affect more than 30% of the company’s 4,000-strong workforce, the Journal says. male. Drivers are not counted as Lyft employees.

It’s another round of cuts for the company, which last cut 700 employees in November. Another large company announced a wave of layoffs as concerns about the economy continued to mount.

The cuts come just days after David Reischer takes over as Lyft’s new CEO and could help the company cut costs by 50%, the paper reported. He said.

in note To employees sent Friday mornings that have since been posted to Lyft’s website, Risher noted that the company intends to use the savings to “invest in competitive pricing, faster pickup times, and better earnings for drivers.”

In the memo, Risher said employees will receive an email with details of their employment status on April 27 at 8:30 a.m. PST.

A Lyft spokesperson told Insider that the company won’t be able to confirm the number of affected employees until next week. However, in an emailed statement, the spokesperson said that “David has made it clear to the company that his focus is on creating an affordable and great experience for riders and improving driver earnings.”

The spokesperson added, “Doing this requires that we lower our costs and structure our company so that our leaders are closer to the riders and drivers. This is a difficult decision and we don’t take it lightly. But the result will be a very far stronger and more competitive Lyft.”

Lyft had been struggling with disgruntled employees and investors before it Reacher appointed last month.

The company has also been scrambling to compete with rivals such as Uber, to which it ceded market share during the pandemic after being slow to offer driver-friendly features and rewards, the Journal reported. mentioned. The company’s stock has fallen more than 70% in the past year. Meanwhile, Uber stock is down just 2% over the past year.

Do you work for Lyft and have a story to share? Contact Lakshmi Varanasi at [email protected] or on the encrypted messaging app Signal at 262-408-1907.