Lift Initiates Another Round of Layoffs, 700 Employees Fired

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Lyft, the second-largest ride-hailing service company in the U.S., will lay off about 700 employees through a second round of cuts, the Wall Street Journal (WSJ) reported on the 3rd (local time).

According to the report, Lyft co-founders John Zimmer and Logan Green disclosed the layoff news to employees on the same day.

They explained the reason behind the layoffs, saying, "There are several challenges across the economy. There is a possibility of a recession next year, and ride-sharing insurance costs are also rising. Although we worked hard to reduce costs this summer, Lyft still needs to become leaner."

Lyft's workforce, excluding drivers, exceeds 5,000 employees. Earlier, Lyft laid off 60 employees, less than 2% of its total workforce, in July. In May, the company also announced plans to delay hiring and reduce budgets in some departments. However, Lyft maintained its performance outlook for 2024.

On the same day, online payment service company Stripe also announced plans to lay off 14% of its total workforce.

Meanwhile, in the New York stock market this afternoon, Lyft's stock price is moving at a level 0.5% lower than the previous close.

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