The ride-hail company is expected to slash hundreds of roles, with Lyft’s president citing a potential recession and worsening economic outlook.
Lyft is laying off 13 percent of its workforce in the second round of major cuts to hit the ride-hailing company this year. The layoffs, which were first reported by The Wall Street Journal, are expected to affect hundreds of roles. Lyft has more than 4,000 employees, which does not include its drivers.
In an email obtained by CNBC, Lyft president John Zimmer cited “a probable recession sometime in the next year” and rising ride-share insurance costs as among the reasons for the layoffs. A spokesperson for the company did not immediately respond to a request for comment.
This isn’t the first time that Lyft is slashing roles this year. The company laid off about 60 employees after deciding to shut down its rental car division last June. Around 1,000 Lyft employees lost their jobs in April 2020 at the height of the covid pandemic, when Lyft’s ride-hailing business all but dried up.
The company has also been the subject of rumors of a possible takeover among investors, with Amazon, Ford, and General Motors seen as possible acquirers.
Lyft’s stock is down nearly 70 percent over the past year as the economic outlook worsened and investors soured on tech stocks. Other tech companies have been slowing down or halting hiring due to the economic downturn. Uber CEO Dara Khosrowshahi announced in early May that it would slow down hiring in an effort to reduce spending.
Lyft is expected to report its third quarter earnings next week.