Alex Baker and The Associated Press
2 days ago
The Associated Press confirmed Friday that Lyft plans to cut 1,200 jobs in the latest round of layoffs for the San Francisco-based ride-hailing company (KRON). The news was first reported earlier today by The Wall Street Journal. The cuts represent a significant reduction in Lyft’s workforce. The company currently employs about 4,000 people, so the cuts are about 30% of its workforce.
The news comes only days later New CEO David Risher It began directing the ride-hailing service with an eye toward cutting costs to help bring its prices more in line with its biggest competitor, Uber.
Richer, the former Amazon executive, told Lyft’s workforce of more than 4,000 employees in an email posted online Friday that a “significant” number of them will lose their jobs. It came at the end of his first week as CEO of Lyft.
The memo did not specify how many people would be let go, but the Wall Street Journal reported that at least 1,200 employees would be laid off. The report cited anonymous people familiar with the cost-cutting plans.
Lyft does not count its drivers among its employees.
Lyft’s most recent round of layoffs occurred in November of last year when the company shed 13% of its workforce. The company also lays off 60 employees last summer.
According to the WSJ, the latest round of cuts could help the company cut its operating expenses by half. The reported layoffs are the latest in a series of tech layoffs that have seen companies like Google, Salesforce and Meta cut all jobs in recent months.
Earlier this week, Buzzfeed also announced that it was shutting down its digital news platform, Buzzfeed News.
San Francisco-based Lyft declined to provide additional details on Friday, but said more information will be released next week.
The Associated Press contributed to this report.