Tech layoffs: Ride-sharing platform Lyft to lay off 1,200 people

Lyft, the ride-sharing app popular in North America, has announced that it will be laying off a significant number of employees. This decision was made by the newly appointed CEO David Risher during his first week in charge.

Risher, who is a former Amazon executive, made this announcement in a note to stakeholders.

He said, “I’m confirming that we will significantly reduce the size of the team as part of a restructuring to focus on better meeting the needs of riders and drivers.”

Although Lyft has not commented on the specific number of cuts, Wall Street Journal reported that at least 1,200 employees, or roughly 30 per cent of its 4,000-person workforce, will be let go.

The company previously reduced its headcount in November, cutting 700 jobs, or about 13 per cent of its then workforce.

Lyft's struggles have continued since its initial public offering (IPO) in 2019, while its primary competitor Uber has remained ahead in terms of market share and market capitalization. Although Lyft debuted at $72, its shares now trade under $10.

Risher has made it clear to the company that its focus is on creating a great and affordable experience for riders and improving drivers' earnings.

"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 highlighted in his note.

The layoffs at Lyft are part of a wider trend of tech layoffs that began in late 2022 and have continued into the new year, affecting companies such as Amazon, Google, Microsoft, and Meta, among others. According to layoff tracker Layoffs.fyi, collectively these companies have laid off over 172,000 employees in 2023.

Lyft has stated that the restructuring will not impact previously issued guidance, and the company is set to report earnings for the first quarter of 2023 on May 4.

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