Lyft will “significantly reduce its staff” as part of a company-wide restructuring, CEO David Risher announced on Friday.
The passenger carrier declined to share specific numbers with NPR on the potential impact of these layoffs. The Wall Street Journal mentioned That layoffs could affect about 30% of Lyft workers, or about 1,200 jobs.
“David has made it clear to the company that his focus is on creating a great, affordable experience for riders and improving driver earnings,” a company spokesperson told NPR.
“Doing this requires that we reduce our costs and structure our company so that our leaders are closer to the riders and drivers,” the spokesperson said. “This is a tough decision and one we don’t take lightly. But the result will be much stronger and more competitive.”
Risher took the reins at Lyft just this week, replacing company co-founders John Zimmer and Logan Green. But during an all-staff meeting a few weeks ago, Risher told employees that layoffs “were in the air.”
“We need to be a faster, flatter company where everyone is closer to our passengers and drivers so we can achieve this purpose,” he said in a joint letter to employees on Friday.
Affected workers will be notified by next Thursday.
Many companies in the tech sector are experiencing turmoil, thanks in part to a major corporation Decrease in digital advertising revenue. Meta, Facebook’s parent company, announced in March that it was Lay off 10,000 people. Amazon announced last month, too It was cutting another 9,000 jobs After it was announced earlier that 18,000 workers will lose their jobs.
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