Ride-hailing service, Lyft, has announced that it will lay off 1,072 employees, amounting to around 26% of its corporate workforce. The company also stated that it will not hire for 250 positions. The announcement follows a memo from new CEO David Risher which confirmed that the company would trim its headcount. The latest job cuts come after the company cut 13% of its workforce in November 2022.
Lyft's shares remained largely unchanged on the news. The company has 4,000 employees and has been emphasizing the need for more streamlined operations in order to better meet the needs of drivers and riders. Co-founders Logan Green and John Zimmer remain on the board, having led the company through its 2019 public offering and expansion.
Lyft's stock has never risen above its debut price and is currently down around 8% year-to-date. The focus on efficiency has been a common theme from tech executives during the economic slowdown, which has hit tech companies particularly hard. Data from Layoffs.fyi shows that over 184,000 tech employees have lost their jobs in 2023 alone.
Lyft did not immediately respond to a request for comment.