Lyft an online Driving service has announced their intentions to lay off 13% of its employees.
With reports from a news journal on Thursday November 3,2022, “it is the company’s second round of layoffs in recent months as the rideshare let go of 2% of its employees”. In July,2022, the 2% of the company’s employee cut approximated to 60 people out of over 4000 employees, not including its drivers.
According to a memo addressed to the company’s staff on Thursday, co-founders John Zimmer and Logan Green announced that the cuts will encompass every department in the company, which was brought on as a result of the broader macroeconomic problems in the global world.
The founders wrote in the memo ,”We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives.Still, Lyft has to become leaner, which requires us to part with incredible team members”.
Neither of the cutbacks will affect drivers, from the 2% cut in July,2022 to the 13% layoff which was announced on Thursday.
Also,with reports from Big Tech companies, a downturn in the tech industry will lead to uncertainty across industries, which could spark widespread fear and cause share prices to fall, investors to pull out of the market, and financial catastrophe for many businesses.
Lyft which seems to have been affected by these economic downturns confirmed in the memo from the co-founders, their plans to “terminate approximately 683 employees”. They further wrote in the memo that, “Despite efforts to avoid this day, we’ve made the difficult decision to lay off 13% of the team”, which will incur a cost between $27 million to $32 million in severance and benefits.
