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Lyft to cut 1,000 jobs after CEO change
https://www.whatjobs.com/news/usa/us-business-news/lyft-to-cut-1000-jobs-after-ceo-change
By Nithya Bose in US business news, posted May 2, 2023
Lyft has started 1,000 layoffs just days after the new CEO's takeover, following 7,000 cuts in November.
The ride-sharing company has also reduced hiring and cut more than 250 unfilled positions.
The company expects to incur $41 to $47 million in severance and other related expenses in the quarter that ends June 30.
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In a note to staff, CEO David Risher said the firm was at the “end of the road” with regard to layoffs and that “all our focus turns to the future.”
As part of the job cuts, Mr. Risher also outlined restructuring measures.
Those include consolidating its ride-sharing operations into three core teams and removing "layers of management across the company" to bring staff closer to executives.
He added those shifts will save costs, which could mean better pay for riders and drivers and cheaper prices.
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Lyft has strived to compete with its rival, Uber, which earned market share during the Covid.
When Lyft’s business was limited to North America, Uber made huge profits through its global operations, including its food delivery business.
Lyft has also delayed launching new features and bonuses to attract drivers during a yearslong labor shortage after pandemic lockdowns.
Following months of criticism from employees and investors, Lyft’s co-founders Logan Green and John Zimmer stepped down and appointed Mr.Risher as the new CEO.
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Risher said restoring staff morale was his first goal, and the firm is now reinventing how customers and drivers are treated.
Lyft's additional layoffs come when many tech firms are trimming their ranks.
Meta said in March that it will shed 10,000 roles this year after cutting 11,000 jobs late last year, affecting about a quarter of its workforce.
Lyft wiped out roughly 700 positions in November, following monthslong cost-cutting efforts.
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