Lyft tightens its belt, shedding 17% of its workforce

Lyft tightens its belt, shedding 17% of its workforce


That is Lyft’s second spherical of layoffs this yr.

Angela Lang/CNET

Lyft is considerably reducing again its employees. The ride-hailing firm revealed in a regulatory submitting Wednesday that it is terminating about 982 workers, which is 17% of its workforce. 

Lyft stated the layoffs are a part of its efforts to scale back working bills and modify money flows due to “ongoing financial challenges ensuing from the COVID-19 pandemic and its impression on the corporate’s enterprise.”

The belt tightening comes as Lyft has seen its enterprise curtailed by the novel coronavirus outbreak. It is seen its ride-hailing income dry up, together with that from its bike and scooter leases. In an effort to diversify its choices, Lyft has rolled out a sequence of recent packages, resembling a pilot for delivering medical provides and check kits to senior residents and different weak populations. It is also engaged on a meal supply program and has partnered with Amazon to offer the retail big with supply drivers.

“It’s now clear that the COVID-19 disaster goes to have broad-reaching implications for the economic system, which impacts our enterprise,” Lyft CEO Logan Inexperienced stated in an emailed assertion. “We now have due to this fact made the troublesome determination to scale back the dimensions of our workforce. Our guideline for decision-making proper now’s to make sure we emerge from the disaster within the strongest potential place to realize the corporate’s mission.”

Uber has additionally skilled a monetary hit in the course of the disaster. Hypothesis unfold Tuesday that it too was planning worker layoffs with a discount of about 20% of its employees, which might be about 5,400 individuals, in keeping with The Data

When requested concerning the potential cutbacks, an Uber spokesman advised CNET, “As you’d anticipate, the corporate is taking a look at each potential situation to make sure we get to the opposite facet of this disaster in a stronger place than ever.”

In a regulatory submitting Tuesday, Uber stated that its longtime chief expertise officer, Thuan Pham, was resigning. Pham was one of many final remaining executives who rose up below former Uber CEO Travis Kalanick’s management. In a press release, present Uber CEO Dara Khosrowshahi stated, “Because the chief of our engineering group for the final seven years, Thuan has made vital contributions which have helped make Uber into the worldwide expertise platform it’s as we speak.”

Since changing into public firms a yr in the past, each Uber and Lyft have seen executives and board members step down. The businesses additionally laid off employees even earlier than the coronavirus emptied metropolis streets. Uber has let go of greater than 1,000 workers in three rounds of cuts, and Lyft terminated roughly 90 individuals in January.

On Wednesday, Lyft stated that together with letting go of employees it is furloughing about 288 workers for a 12-week interval. It is also starting short-term wage reductions. The decreased pay might be 30% for executives, 20% for vice presidents and 10% for all different employees. Members of Lyft’s board of administrators have additionally volunteered to waive 30% of their money compensation for the second quarter of this yr.

Each Lyft and Uber are scheduled to have earnings calls with buyers subsequent week.

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