Lyft to lay off 13% of employees

Due to rising inflation and the risks of an impending recession, Lyft made a statement on the revision of the staffing table and the subsequent dismissal of about 700 employees, which is 13% of the company's total staff.

Decisions regarding staff cuts were made under the influence of a wide range of macroeconomic factors and will affect all divisions of the company. This was announced by the firm’s co-founders Logan Green and John Zimmer in their memo to staff.

In addition, the note said that many efforts have been made to reduce the company's costs this summer. For example, it was decided to slow down and subsequently suspend the hiring of staff, as well as to postpone secondary initiatives. According to the founders, the company should become leaner, which forces the management to say goodbye to a certain part of the team.

During the pandemic, with increased time spent online by consumers, there has been significant growth in the technology sector. However, several IT companies announced a slowdown in growth in the fourth quarter due to declining customer and advertiser spending. The tech sector is currently reviewing its staffing and investment needs.

Another popular taxi aggregator, Uber, which is Lyft's main competitor, still does not share the current trend. The company made a statement about a significant increase in revenue due to the growing demand for rides and food deliveries. On Monday, November 7, Lyft will publish its quarterly report.

In their memo, the Lyft founders said that no one is immune from rising inflation and a slowing economy.

The decision to lay off about 683 employees was officially confirmed by the company. Lyft's expenses associated with the restructuring, as well as benefits costs, will range from $27 million to $32 million.