Lyft plans to cut 26%, or 1,072 workers, from its workforce. The downsizing is detailed in a US Securities and Exchange Commission filing. It's part of a larger strategy to cut costs announced by CEO David Risher just a few weeks ago, when he first joined the company.
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In the filing, it was also revealed that more than 250 positions will be eliminated. Lyft estimated that the downsizing will cost between $41 and $47 in severance package costs, plus any additional costs from stock-based compensation.
These layoffs are the latest in a long line of job losses in the tech sector and at Lyft. Last November, the company laid off approximately 13% of its employees or 683 people. Layoffs.fyi is a website that tracks headwinds within the tech industry. It reports that more than 1,000 companies have laid off almost 350,000 workers since last year.
Lyft is struggling to compete with Uber as the biggest ride-sharing service in the US. Lyft's shares have dropped by 90% since its IPO in 2019.
The news caused shares of Lyft to rise slightly, rising 1.5% in New York's closing market price to $10.20. Lyft said it would give more information about its cost-cutting plans in its first quarter earnings call scheduled for May 4, according to the filing.
Meta announced 10,000 layoffs on March 14, building upon earlier downsizing in its year of efficiency.
Amazon announced a new round layoffs on March 20, letting go approximately 9,000 employees. This follows the job cuts made in November.
On March 22, Indeed, an online job search site, announced that it would cut 15%, or 2,200, of its employees.
Accenture announced on March 23 that it would cut 19,000 jobs or 2.5% from its workforce.
Roku, a video-streaming hardware and service, announced a 6% reduction in its workforce on March 30.
Netflix confirmed that it will lay off an unknown number of employees on March 31.
Apple, the last holdout in the industry, announced that it would lay off a few employees from its corporate retail team on April 3.
Dropbox, a data storage company announced that it would be laying off 500 workers, or 16%, on April 27.
Amazon's latest layoffs are the result of years of overhiring in the technology industry
Meta announced 10,000 more layoffs in its "year efficiency"
Amazon's 18,000 layoffs are a good indicator of what hiring and firing looks like in 2023