Lyft Terminates 36% Of Workers Since November

The ride-hailing service Lyft is slashing 26% of its workforce, or about 1,072 employees, as it attempts to reduce operating expenses. Coupled with the 13% reduction in headcount from November, the company has let go of 36% of its staff in about six months. 

“The plan involves the termination of approximately 1,072 employees, representing 26% of the Company’s employees. The Company has also decided to scale back hiring and has eliminated over 250 open positions,” the company said in a regulatory filing Thursday. 

Lyft to Terminate About 1,072 Employees, 26% of Workforce

— zerohedge (@zerohedge) April 27, 2023

The 8-K filing stated the company anticipates incurring approximately $41 million to $47 million in restructuring costs and other charges related to employee severance and benefits. These charges are expected to be recorded in the second quarter. 

Combine today’s layoff announcement with the one from November. Then, Lyft has reduced its workforce by 36% in just six months.

Last fall, Lyft CEO Logan Green and President John Zimmer warned about a “recession” in 2023 and rising ride-share insurance costs as reasons for the headcount reductions. 

Lyft’s stock is down 86% since the initial public offering in early 2019. 

Add Lyft to the long list of tech companies hemorrhaging workers amid increasing threats of recession. As we noted days ago, a job recruiter told Yahoo Finance, “the layoff cycle isn’t done.”