Lyft suspends recruitment of personnel in the U.S.

Lyft Inc is suspending new hires in the U.S. until the end of the year, a company spokesman said, citing high inflation forcing cost-cutting measures on Tuesday.

Lyft cut nearly 60 working positions in its leasing division in July, and is struggling with rising costs as U.S. inflation reaches levels not seen in four decades. According to the latest quarterly report that was filed with the Securities and Exchange Commission, on June 30, Lyft had about 5,000 employees.

San Francisco, California-based Lyft said its spending rose 36% in a recent quarter.

Various tech companies have been forced to cut headcount in recent months, with larger rival Lyft Uber Technologies Inc also cutting hiring as well as marketing spending.

The company posted a record quarter earlier this year in August amid a surge in travel demand and revenue from its cost-cutting efforts.

However, Lyft warned that problems would persist in the third quarter because of macroeconomic uncertainty, inflation, and high insurance costs.