Lyft to reduce workforce by 13%

About 683 people may be let go as part of cost-cutting exercise

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Nasdaq listed ride-hailing technology company Lyft Inc. has said that it will reduce its workforce by 13 per cent. This means around 683 people will lose their jobs.
This was done to cut costs and deal with the unstable economy.

The move by Lyft is expected to result in expenses in the range of $27 million and $32 million in the fourth quarter.

The company has been on a hiring freeze this year. Besides, it also laid off 60 employees in the month of July.

“The announced reduction in force is a proactive step as part of the company’s annual planning to ensure the company is set up to accelerate execution and deliver strong business results in Q4 of 2022 and in 2023,” Lyft said in a statement.

With a 28 per cent market share, Lyft is the second-largest ridesharing firm in the US as of 2022, behind Uber.

Ride-sharing companies such as Lyft and Uber in the US are also bothered about the fact that the labour department in their country has proposed to limit independent contractors and that would increase their costs.

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