Lyft is reportedly slashing 1,200 jobs — at least 30% of its staff. It's struggling to keep up with Uber.
Lyft is slashing 1,200 from its workforce, the WSJ reports. The cuts come as the company is racing to slash costs to better compete with Uber.
Associated Press
- Lyft plans to cut 1,200 jobs in an attempt to reduce costs, according to the Wall Street Journal.
- The cuts come days after Lyft's new CEO, David Risher, officially assumed the role.
- Lyft lost market share to ride-hailing rival Uber during the pandemic.
Ride-hailing company Lyft is planning to cut 1,200 jobs, the Wall Street Journal reported 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-person workforce, the Journal noted. Drivers aren't counted as employees at Lyft.
It's another round of reductions for the company that last cut 700 employees in November. And it's yet another big company announcing a wave of layoffs as worries over the economy continue to mount.
The cuts come just days after David Risher took the helm as Lyft's new CEO and could help the company reduce costs by 50%, the Journal said.
In a memo to employees sent Friday morning that has since been posted on Lyft's site, Risher noted that the company intends to use the savings to "invest in competitive pricing, faster pick-up times, and better driver earnings."
In the memo, Risher said employees would receive an email with details of their employment status on April 27 at 8:30 am Pacific time.
A spokesperson for Lyft told Insider that the company would not be able to confirm the number of affected employees until next week. However, in an emailed statement, the spokesperson said that "David has made clear to the company that his focus is on creating a great and affordable experience for riders and improving drivers' earnings."
The spokesperson added, "to do so requires that we reduce our costs and structure our company so that our leaders are closer to riders and drivers. This is a hard decision and one we're not making lightly. But the result will be a far stronger, more competitive Lyft."
Lyft had been struggling with discontented employees and investors ahead of Risher's appointment last month.
The company has also been scrambling to compete with rivals like Uber, to which it ceded market share during the pandemic after being slow to introduce driver-friendly features and bonuses, the Journal reported. The company's stock is down more than 70% in the past year. Uber, meanwhile, is down only around 2% over the past year.
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