Lyft announced layoffs earlier this morning that’ll see 1,072 employees cut from their jobs, displacing around 26 percent of the company’s workforce. In addition, the company said it will not hire for an additional 250 open positions according to an SEC filing. The layoff news comes shortly after Lyft CEO, David Risher, warned employees about plans to reduce the company’s headcount last week, though this came without a specific number or percentage.
The news also follows previous layoffs seen back in November of 2022 in which around 13 percent of Lyft’s workforce was cut. In speaking with employees, Risher noted that these cuts would form part of a continued focus on better meeting consumer needs. As reported by outlets like CNBC, Risher stepped into the CEO role earlier this month with co-founders Logan Green and John Zimmer remaining on the company’s board.
Since becoming CEO, Risher has reportedly stressed the importance of streamlining operations to Lyft employees in memos and in public messaging in order to get back to “better meeting the needs of riders and drivers.” Stock remains relatively unchanged following today’s news, up a little under 2 percent, and down just under 1 percent in After Hours trading.
It’ll be interesting to see moving forward whether there will be any additional layoffs at Lyft, and whether these cuts will help do what the company’s CEO is focused on in “streamlining operations.” Now that you’re caught up with layoffs at Lyft, be sure to brush up with some of our previous layoff news, including Twitch planning to layoff over 400 employees alongside Amazon's latest cuts, and how EA intends to lay off 6 percent of its workforce as part of a company restructure.