Lyft Cuts Around 700 Corporate Employees
Though the vast majority of Lyft’s drivers come and go, layoffs have still managed to touch the company’s corporate seats. In July, Lyft said it would lay off around 60 jobs in its rental division and will reportedly discontinue service where it offers long-term car rental, Reuters reported.
That was just the beginning though. Around four months after disbanding its rental team, Lyft made the much larger move to layoff nearly 700 of its corporate employees, or around 13% of staff.
The company’s two co-founders, John Zimmer and Logan Green, sent a memo to staff confirming earlier reports by The Wall Street Journal acknowledging the layoffs. Fears over an impending recession and increasing rideshare insurance were cited among several reasons for the layoffs. The founders claimed they, “worked hard” to bring down costs over the summer but ultimately to no avail.
“The layoffs impact every organization in the company, and were based on deprioritized initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory,” the founders wrote.
“We are not immune to the realities of inflation and a slowing economy.”
