Lyft has more than 4,000 employees, not including its drivers.
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Sebastian Hidalgo for The Wall Street Journal
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It said it would cut 13% of employees, or nearly 700 jobs, and is the latest tech company to say it needs to cut costs before volatile economic conditions.
Co-founders John Zimmer and Logan Green announced the staff cuts Thursday. “There are many challenges at play across the economy. We are facing a potential recession sometime next year, and travel insurance costs are on the rise,” they wrote in the note seen by The Wall Street Journal.
“We worked hard to cut costs this summer: We slowed down, then we froze hiring; cut spending and paused on less-important initiatives. However, Lyft has to get leaner, which requires us to let go of incredible team members.”
The passenger transportation services company has more than 4,000 employees, not including its drivers. Leave 60 people, or less than 2% of its workforce, in July. In May, she said so Planning to slow hiring And reduce the budgets of some of its departments.
Big and small technology companies Hiring freeze announced or Recruitment Discounts This year after many were hired at breakneck speed during the pandemic and now face a volatile economic outlook. On Thursday, payments company Stripe Ltd. said it was laying off about 14% of its employees and blamed it on the harsh economic climate.
San Francisco-based Lyft also said it will sell the first-party auto service company and that most of that team is expected to receive roles from the acquiring company, which it did not name.
The company maintained its third-quarter and 2024 full-year earnings forecasts, but said it expects to incur $27 million to $32 million in layoffs related restructuring Thursday in the fourth quarter of this year. The company announced third-quarter results on Monday.
write to Pritika Rana at [email protected] and Emily Glazer at [email protected]
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