Chris Gerace, a part-time driver for Uber and Lyft, argues that the temporary surcharge that Lyft and Uber are offering to help drivers absorb the higher costs isn’t enough.
Lyft announced on Thursday that it will cut its headcount by 13%.
About 683 employees will lose their jobs as a result of the layoffs, which co-founders Logan Green and John Zimmer said in a memo “will affect every organization in the company.” The ride-sharing company had 5,000 employees at the end of June, according to its latest quarterly filing.
| ticker | security | Last | change | change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 13.90 | -0.10 | -0.68% |
The layoffs were based “on deprioritization initiatives, an attempt to reduce management tiers, broader savings goals and, in some cases, performance history,” the co-founders said. They pointed to “several challenges across the economy,” including a looming “probable” recession and rising insurance costs.
Lyft has announced that it will cut its headcount by 13%. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
In September, Lyft spokeswoman Ashley Adams told FOX Business that the ridesharing company “is pausing hiring for all US-based positions through the end of the year.” News of this move was first reported by the New York Post.
LYFT DELIVERS US HIRING FOR THE REST OF THE YEAR
Lyft employees affected by the layoffs announced Thursday will receive at least 10 weeks’ pay, with those who have worked at the company more than four years getting an additional four weeks, according to the memo. They will also receive healthcare, career support and an expedited transfer of stock through April.
In September, Lyft spokeswoman Ashley Adams told FOX Business that the ridesharing company “is pausing hiring for all US-based positions through the end of the year.” (Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images/Getty Images)
Lyft expects the layoffs to cost approximately $27 million to $32 million “related to employee severance and benefit costs,” according to an SEC filing.
STRIPE RESTRICTS 14% OF THE WORKFORCE
The company also has plans to sell its first-party vehicle service business as part of its cost-cutting efforts, Green and Zimmer said. Workers with roles in this segment are expected, according to the memo, to get a job with the company that takes it over.
“We are not immune to the realities of inflation and a slowing economy,” the Lyft co-founders said. (iStock / iStock)
“We are not immune to the realities of inflation and a slowing economy,” the Lyft co-founders said. “We need 2023 to be a time when we can do better work without having to change plans in response to external events – and the harsh reality is that today’s actions are preparing us to do so.”
Lyft’s third-quarter outlook remains unchanged, according to the company. It is scheduled to release its financial results for the third quarter on Monday.
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