Second social plan for Lyft in six months. “I confirm that we will significantly reduce the size of the team as part of a restructuring to better meet the needs of passengers and drivers,” Chief David Risher said in a message to employees posted Friday at company headquarters. San Francisco site.
According Wall Street JournalLyft, which has more than 4,000 employees, could lay off 30% or more of its staff. This measure should enable you to cut your costs in half.
The car rental platform with driver has already laid off about 700 employees in November (about 13% of its workforce at that time).
The company’s co-founders, Logan Green and John Zimmer, spoke at the time about the risk of a recession and rising costs of rideshare insurance.
$1.6 billion in losses last year
“We need to be a faster company, with fewer layers, where everyone is closer to our passengers and drivers,” David Risher justified.
The cost reductions should allow the app to lower ride prices, improve driver revenue and drive “profitable growth.”
Lyft, which has not diversified like Uber into delivering meals and other products, suffered a net loss of $1.6 billion in 2022.
From Snap to Stripe to Google to Meta, most of Silicon Valley’s top companies have implemented layoffs in recent months after hiring heavily before and during the pandemic.
Like many other companies in other industries, they are facing adverse economic conditions, including raising interest rates to combat inflation.
Source: BFM TV
