- Lyft confirmed that it will “significantly reduce” its headcount beginning next week, according to an email from CEO David Risher.
- The layoffs come a week into Risher’s term and were hinted at at a previous city council meeting.
- The Wall Street Journal reports that the layoffs will affect at least 1,200 employees, about 30% of the 4,000-person company’s work force.
A passenger arrives at Los Angeles International Airport looking for ground transportation during a statewide workday to demand that Uber and Lyft companies follow California law and give drivers “basic employee rights,” in Los Angeles, California, US, August 20, 2020.
Mike Blake | Reuters
Ride-sharing app Lyft will lay off a slew of employees a week after its new CEO, David Risher, took over the company announce Friday.
A Lyft spokesperson declined to comment on the specific number of cuts, but The Wall Street Journal reported mentioned that the company will lay off at least 1,200 workers, or about 30% of its 4,000-person workforce.
Richer told Lyft employees in an email posted to Lyft’s website Blog. Richer’s appointment was announced in March and took effect on April 17.
Lyft stock hasn’t changed in the news. The company previously cut staff 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 passengers and drivers so we can achieve this purpose,” Richer wrote on Friday.
Resher, a former Amazon executive, told staff at City Council a few weeks ago that layoffs were imminent.
Lyft has struggled since going public in 2019 as its primary competitor, Uber, has remained ahead in terms of market share and market capitalization. Lyft debuted at $72 and is now trading at less than $10.
“David has made it clear to the company that his focus is on creating a great, affordable experience for riders and improving drivers’ earnings,” a Lyft spokesperson told CNBC. “This is a difficult decision that we don’t take lightly.”
Tech layoffs began in earnest in late 2024, and have continued into the new year. Earlier this week, Meta ran a previously announced round of sales. Amazon, Google, Microsoft and many other tech companies laid off more than 172,000 employees in 2023, according to layoffs.fyi layoffs tracker.
Lyft said the restructuring will not affect previously issued guidance. The company is scheduled to report its earnings for the first quarter of 2023 on May 4.
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