Lift also lays off 60 employees... Decision to suspend rent car business

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. ride-hailing service company Lyft recently laid off 60 employees and announced it will also discontinue its car rental business, the Wall Street Journal (WSJ) reported on the 20th (local time), citing multiple sources.

According to the report, the layoffs account for less than 2% of the total workforce and mainly involve operational roles. This move is part of a broader trend among big tech companies such as Apple, Microsoft (MS), Tesla, and Twitter, which have been announcing layoffs, hiring freezes, and investment plan delays amid growing concerns about an economic downturn.

Lyft confirmed in a memo sent to some employees that it will shut down the business segment that allowed consumers to rent cars through its application. Lyft Vice President Karl Rackton stated that discussions about ending this business began last fall, and the economic situation has made it difficult to justify continuing the business, accelerating these discussions.

Additionally, Lyft is restructuring its global operations by consolidating from 14 regions to 9 and closing hubs in North Carolina and Detroit.

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