Lyft, the ride-sharing app, will lay off a significant number of employees just one week after new CEO David Risher’s appointment.
Risher announced the layoffs in an email to Lyft employees that was later published on the company’s blog but did not provide a specific number. However, the Wall Street Journal reported that at least 1,200 workers, or roughly 30% of its 4,000-person workforce, will be let go.
The layoffs are part of a restructuring effort aimed at better serving the needs of riders and drivers, according to Risher.
In a recent town hall meeting, Risher had told employees that layoffs were imminent, confirming this in his email. Risher, a former Amazon executive, was appointed CEO in March, and his tenure began on April 17.
Lyft has struggled since its initial public offering (IPO) in 2019, with its primary competitor Uber remaining ahead in terms of market share and market capitalization.
The company’s stock was unaffected by the announcement of the layoffs. Lyft had previously reduced its workforce in November, cutting 700 jobs or about 13% of its employees.
According to a Lyft spokesperson, Risher’s focus is on creating a better and more affordable experience for riders and improving drivers’ earnings. The company said that the restructuring would not have an impact on its previously issued guidance.
Lyft is set to report earnings for the first quarter of 2023 on May 4.
Tech layoffs have been on the rise since late 2022 and have continued into 2023. Earlier this week, Meta implemented a previously announced round of cuts.
Amazon, Google, Microsoft, and many other tech companies have collectively laid off over 172,000 employees in 2023, according to layoff tracker layoffs.
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