Lyft, the ride-sharing app, has announced that it will lay off 1,072 employees, which represents approximately 26% of its corporate workforce. In addition, the company will not hire for an additional 250 positions, according to an SEC filing released on Thursday. This news comes a week after the new Lyft CEO, David Risher, confirmed that the company would be reducing its headcount.
Lyft currently employs around 4,000 people and had already implemented a 13% reduction in headcount back in November 2022. Risher, who took over as CEO earlier this month, has emphasized the need to streamline operations and focus on better serving the needs of riders and drivers in his communications with employees and the public.
Lyft co-founders Logan Green and John Zimmer remain on the company's board, having led the company through its 2019 public offering and subsequent expansion. However, despite the company's growth, its stock has never risen above its debut price and is currently down around 8% year-to-date.
Like many other tech companies, Lyft has been hit hard by the broader economic slowdown, with more than 184,000 tech employees losing their jobs in 2023 alone, according to data from Layoffs.fyi. With a focus on efficiency becoming a familiar refrain from tech executives, it remains to be seen how the company will fare in the coming months. Lyft has not yet commented on the recent layoffs.