It looks like another round of deep layoffs may be coming to ride-hailing company Lyft. According to a report from The Wall Street Journal, the company’s newly appointed CEO said jobs will be cut “significantly” to reduce costs. The total number of jobs lost isn’t known right now, but the outlet says it could be at least 1,200, or about 30 percent of Lyft’s entire workforce.
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These cuts could lead to costs at Lyft being slashed nearly in half, according to WSJ. The news came just a few weeks after CEO David Risher said the ride-hailing company was not for sale – which was much to the dismay of investors.
Back in November of 2022, we reported that Lyft cut 683 to do a little bit of cost savings. Back then, that was about 13 percent of the company’s corporate-level workforce.
“We need to bring our costs down to deliver affordable rides, compelling earnings for drivers and profitable growth,” Risher told the Journal. He also added that those factors “require us to reduce our size and restructure how we’re organized.”
As was mentioned earlier, we still don’t know exactly how many jobs are going to be cut, and Risher, who took charge on April 17, didn’t add any clarity to that question with his statement to the outlet. However, he did say that Lyft would be sharing more with employees next week.
“I own this decision, and understand that it comes at an enormous cost,” he told the paper.
The company’s stock has slid nearly 70 percent in the past year alone – far outpacing the tech-heavy Nasdaq Composite Index which fell nine percent. To add insult to injury, Uber’s stock declined just four percent over the same time period.