Ride-Sharing Firm Lyft Lays Off 1,200 Employees

North America's popular ride-sharing app Lyft, considered to be the arch rival of Uber in the region, will be laying off a significant number of employees. The newly appointed CEO, David Risher, announced this as the first major decision since he took over the reigns.

Announcing this in a note to stakeholders, Risher, an ex-Amazon executive, 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."

Though Lyft has not shared the number of jobs to be cut, 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. Previously, in November, the company cut nearly 700 jobs, or about 13% of its then workforce.

Lyft launched its initial public offering (IPO) in 2019 and was listed at $72, its shares now trade under $10. Since its debut, the company continues to struggle to make ends meet, while its primary competitor Uber has remained ahead in terms of market share and market capitalisation.

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, these companies have collectively laid off over 1,72,000 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.