Lyft, ride-hailing company, to sack 683 workers to save costs

San Francisco: The ride-hailing company Lyft is firing 683 workers, or 13% of its workforce, in an effort to reduce operational costs amid global macroeconomic conditions.

According to a filing with the US Securities and Exchange Commission (SEC), Lyft said the cuts are a proactive step to ensure it "is set up to accelerate execution and deliver strong business results in Q4 of 2022 and in 2023".

"The plan involves the termination of approximately 683 employees, representing 13% of the company's employees. In connection with the plan of termination, the company estimates that it will incur approximately $27 million to $32 million of restructuring and related charges related to employee severance and benefits costs," Lyft wrote in the SEC filing.

"As part of the restructuring charges for this plan of termination, in the fourth quarter of 2022 and first quarter of 2023 the company expects to record a stock-based compensation charge and corresponding payroll tax expense related to equity compensation for employees who were terminated," it added.

In September, Lyft announced to freeze all hiring amid the economic instability and recession fears.

The freeze affects all Lyft departments in the US and will last into next year, reported TechCrunch, as the world goes through tumultuous economic times.

"Like many other companies navigating an uncertain economy, we are pausing hiring for all US-based roles through the end of the year," a Lyft spokesperson was quoted as saying.

Lyft laid off at least 60 employees and shut its first-party car rental service in July, and it aimed to consolidate its global operations amid the macro-economic conditions.

Lyft also shut down its first-party car rental service it was running in five locations.

Source: IANS

Published on: Friday, November 04, 2022, 04:59 PM IST