Lyft, a ride-hailing company and a competitor of Uber, is planning to lay off 1,072 employees, equivalent to 26% of its workforce, as part of a cost-cutting strategy. The company is under new leadership, with CEO David Risher implementing measures to improve the service for riders and drivers. The job cuts will also involve eliminating more than 250 open positions, reducing management layers, and reorganising the ride-sharing business.
Lyft will spend between $41 million and $47 million on severance and benefits in the second quarter. This is not the first time Lyft has implemented job cuts; 13 percent of its workforce was laid off in November last year. Despite the layoffs, the company’s founders remain committed to building a better product.
Clubhouse, an audio-based social networking app, is laying off over 50 percent of its workforce to reset the company and concentrate on a smaller team with a product focus.
According to the company’s founders, having a smaller and more streamlined team will allow for quicker iteration and the development of the optimal product for Clubhouse 2.0.
Departing employees will receive severance pay, equity acceleration, healthcare coverage, and career and immigration support, and they can keep their company-issued laptops to research and apply for new roles. The company will pay salaries for the rest of April, plus four months of additional severance, and will pay for COBRA through August 31, 2023, to ensure continued healthcare coverage for affected employees and their families. Despite the layoffs, the co-founders remain committed to their product vision.
