A traveler arriving at Los Angeles International Airport seems to be for floor transportation throughout a statewide day of motion to demand that ride-hailing corporations Uber and Lyft observe California legislation and grant drivers “basic employee rights” in Los Angeles, California, U.S., August 20, 2020.
Mike Blake | Reuters
Ride-sharing app Lyft will lay off a significant number of employees one week into new CEO David Risher’s tenure, the company announced Friday.
A spokesperson for Lyft declined to comment on the specific number of cuts, but the Wall Street Journal reported that the company would lay off at least 1,200 workers, or around 30% of its 4,000-person workforce.
“I’m confirming that we’ll considerably cut back the scale of the staff as a part of a restructuring to concentrate on higher assembly the wants of riders and drivers,” Risher told Lyft employees in an email that was published on Lyft’s blog. Risher’s appointment was announced in March and went into effect April 17.
Lyft stock was unchanged on the news. The company previously reduced its headcount in November, cutting 700 jobs, or about 13% of the workforce.
“We should be a sooner, flatter firm the place everyone seems to be nearer to our riders and drivers so we will ship on this objective,” Risher wrote on Friday.
Risher, a former Amazon executive, told employees in a town hall a few weeks ago that layoffs were imminent.
Lyft has struggled since its IPO in 2019 as its primary competitor Uber has remained ahead in terms of market share and market capitalization. Lyft debuted at $72 and now trades under $10.
“David has made clear to the corporate that his focus is on creating a terrific and reasonably priced expertise for riders and enhancing drivers’ earnings,” a Lyft spokesperson told CNBC. “This is a tough determination and one we’re not making calmly.”
Tech layoffs began in earnest late 2022, and have continued into the new year. Earlier this week, Meta carried out a beforehand introduced spherical of cuts. Amazon, Google, Microsoft and many other tech companies have collectively laid off over 172,000 employees in 2023, according to layoff tracker Layoffs.fyi.
Lyft said the restructuring wouldn’t impact previously issued guidance. The company is set to report earnings for the first quarter of 2023 on May 4.
WATCH: Lyft corporate shake-up
Source: www.cnbc.com”