CNN
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Lyft
(LYFT) plans to “considerably cut back” its workforce, the corporate’s new CEO David Risher informed workers on Friday, in one other spherical of layoffs because it struggles to show a revenue and pull off a turnaround.
In a company-wide memo, Risher mentioned the cuts have been aimed toward making Lyft a “quicker, flatter firm the place everyone seems to be nearer to our riders and drivers.”
“I personal this resolution, and perceive that it comes at an unlimited value,” Risher continued. “We’re not simply speaking about crew members; we’re speaking about relationships with individuals who’ve labored (and performed) collectively, typically for years.”
The announcement follows Lyft’s transfer in November to chop 13% of its workforce, citing fears of a looming recession.
The Wall Avenue Journal reported that the newest job cuts would eradicate at the least 1,200 positions or upward of 30% of its workers. A Lyft spokesperson declined to supply particulars on the extent of the cuts.
“David has made clear to the corporate that his focus is on creating an incredible and inexpensive expertise for riders and bettering drivers’ earnings,” the spokesperson mentioned. “To take action requires that we cut back our prices and construction our firm in order that our leaders are nearer to riders and drivers. It is a arduous resolution and one we’re not making evenly. However the end result shall be a far stronger, extra aggressive Lyft.”
Lyft introduced final month that Risher, an Amazon veteran, would take over as CEO in April, and that co-founders Logan Inexperienced and John Zimmer will step down from their administration positions on the ride-hailing firm.
Risher was the thirty seventh worker of Amazon – an organization that has lengthy been the mannequin for the on-demand business – and he went on to develop into the e-commerce big’s first head of product and head of US retail.
For Lyft and Risher, the present challenges are immense. Whereas Uber diversified its enterprise past ride-hailing by delivering meals and grocery gadgets, Lyft by no means did. That arguably damage the corporate earlier within the pandemic when fewer prospects have been touring however extra have been ordering gadgets on-line.
Now Uber is exhibiting renewed energy In its most up-to-date earnings report, Uber mentioned that it had its “strongest quarter ever,” reporting a 49% year-over-year enhance in income. Lyft’s newest earnings report, in the meantime, was unusually disappointing for Wall Avenue.
Lyft shares have been up 6% in noon buying and selling Friday, however the firm’s inventory is down roughly 70% over the previous yr.
– CNN’s Catherine Thorbecke contributed to this report.