Lyft to cut 1,072 employees, or 26% of its workforce

Ride-hailing app Lyft will lay off 1,072 staff, roughly 26% of its company workforce, and will not rent for a further 250 positions, the corporate stated in an SEC submitting Thursday.

The news comes every week after a memo from new Lyft CEO David Risher confirmed that the corporate would trim its head rely.

Lyft shares have been largely flat on the news. The firm has round 4,000 staff and had already carried out a 13% head rely discount in November 2022.

Risher’s tenure as CEO began earlier in April. He has emphasised a must streamline operations and get again to “better meeting the needs of riders and drivers” in worker communications and public messaging.

Lyft co-founders Logan Green and John Zimmer stay on the corporate’s board, having led the corporate by its 2019 public providing and subsequent growth.

The firm’s inventory has by no means risen above its debut value and stays down round 8% yr thus far.

A deal with effectivity has been a well-recognized chorus from tech executives. The broader financial slowdown has hit tech corporations significantly laborious: More than 184,000 tech staff have misplaced their jobs in 2023 alone, based on knowledge from Layoffs.fyi.

Lyft didn’t instantly reply to a request for remark.