Lyft in new round of layoffs, stock reacts
Latest Lyft cuts could impact 30% or more of the company’s over 4,000 employees!
Lyft shares have slid close to 70% over the past 12 months.
Tweet on Lyft stock reaction
@lyft plans to cut 1,200 or more jobs in a new round of layoffs as the ride-sharing company aims to reduce costs, via @FactSet #lyft #ride pic.twitter.com/UiWoh3Pqj1
— The_Journalbiz (@the_journalbiz) April 21, 2023
Factset chart on Lyft
Lyft Inc. LYFT plans to cut 1,200 or more jobs in a new round of layoffs as the ride-sharing company aims to reduce costs, according to people familiar with its plans.
The latest cuts could impact 30% or more of Lyft’s more than 4,000 employees, the people said, and the company had planned to announce the move after a board meeting next week. The cuts could help Lyft slash 50% of its costs, some of the people said. Lyft doesn’t count its drivers as employees.
The move comes days after a new chief executive officially took control and follows an earlier round of cuts that shed about 700 people late last year.
Lyft has struggled to keep up with its larger rival Uber Technologies Inc., which gained market share and drivers during the pandemic. Lyft decided not to diversify outside transportation and limited its business to North America, while Uber’s food-delivery business and global operations gave it a boost.
The company’s stock slid close to 70% over the past 12 months, while the tech-heavy Nasdaq Composite Index fell 9%. Uber shares declined 4% over the same period.
Following an initial rise after The Wall Street Journal reported the company’s plan to cut jobs, Lyft shares were little changed in midday trading Friday
