Ride-hailing platform Lyft laid off 1,072 employees

San Francisco: Ride-hailing platform Lyft has announced that it will lay off 26 percent of its workforce, or about 1,072, as part of a restructuring plan. The company has also paused hiring plans and is looking to eliminate 250 open job positions. “Lyft announced a restructuring plan as part of its efforts to reduce operating costs,” said a US Securities and Exchange Commission (SEC) filing on Thursday. The plan includes layoffs of approximately 1,072 employees, representing 26 per cent of the company’s workforce.

The company estimates that the move will cost approximately $41 million to $47 million related to severance and employee benefits in the second quarter of 2023, all of which will be future cash expenditures. “In the same quarter, the company also expects to incur additional costs related to stock-based compensation and payroll tax expense related to employees affected by this restructuring,” Lyft said. Last week, Lyft announced a significant reduction in team size as part of a restructuring to focus on better serving the needs of riders and drivers.

Lyft CEO David Risher said, “It’s my decision. We’re not just talking about team members, we’re talking about relationships with people who’ve worked together, sometimes for years. Those affected will receive at least 10 weeks’ pay. The CEO said, “We need to be a company where everyone is close to our riders and drivers, so that we can meet this objective. We need to deliver affordable rides, attractive earnings for drivers and reduce our costs to drive profitable growth.”