Lyft continues its efforts to streamline operations, with the CEO telling employees the company will “significantly reduce” its workforce.
Lyft laid off 13% of its staff in late 2022, but the company is preparing for another round, according to a company-wide memo. CEO David Risher said the cuts are “part of a restructuring to focus on better meeting the needs of riders and drivers.”
Risher says the layoffs are necessary to help the company reduces costs and continue providing affordable rides.
“We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on this purpose,” Risher said. “And we need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth. We intend to use these savings to invest in competitive pricing, faster pick-up times, and better driver earnings. All of these require us to reduce our size and restructure how we’re organized.”
Risher took responsibility for the decision, saying he knew the “enormous cost” associated with it.
“I own this decision, and understand that it comes at an enormous cost. We’re not just talking about team members; we’re talking about relationships with people who’ve worked (and played) together, sometimes for years. “
The Wall Street Journal says the planned layoffs will impact 1,200 of the company’s 4,000 employees, or roughly 30%.
