A Lyft logo is installed on a Lyft driver’s car in Pittsburgh. The company announced this week that it is making major cuts to its staff in a cost-saving manner.
Gene J. Puskar/AP
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Gene J. Puskar/AP
A Lyft logo is installed on a Lyft driver’s car in Pittsburgh. The company announced this week that it is making major cuts to its staff in a cost-saving manner.
Gene J. Puskar/AP
Lyft will “significantly reduce” its staff as part of a company-wide restructuring, CEO David Risher announced Friday.
The ride-hailing company declined to share with NPR specific numbers about the potential impact of these layoffs. The Wall Street Journal reported that the layoffs could affect about 30% of Lyft’s workforce, or about 1,200 jobs.
“David has made it clear to the company that his focus is on creating a great and affordable experience for drivers and improving driver earnings,” a company spokesperson told NPR.
“To do this we need to reduce our costs and structure our company so that our leaders are closer to drivers and drivers,” said the spokesman. “This is a tough decision and one we are not taking lightly. But the result will be a much stronger and more competitive Lyft.”
Risher had only taken the reins at Lyft this week, replacing company founders John Zimmer and Logan Green. But during an all-staff meeting a few weeks ago, Risher told employees that layoffs “were up in the air.”
“We need to be a faster, flatter company where everyone is closer to our drivers and riders so that we can fulfill this purpose,” he said in a publicly shared message to employees on Friday.
Affected workers will be notified by next Thursday.
Several companies in the technology sector are experiencing turmoil, thanks in part to a steep decline in digital ad revenue. Facebook’s parent company Meta announced in March that it was laying off 10,000 people. Also last month, Amazon announced that it was cutting another 9,000 jobs after earlier announcing that 18,000 workers would lose their jobs.
