Ride-sharing company Lyft plans to “significantly reduce” its staff size as part of efforts to restructure the ride-sharing company and cut costs, CEO David Risher said Friday in a note to employees.
Risher said employees would learn their employment status by the morning of April 27.
The layoffs could affect at least 1,200 workers, accounting for over 30% of the company’s 4,000 employees, The Wall Street Journal reported, citing unidentified sources. The newspaper noted that Lyft does not consider drivers to be employees.
“I know this creates uncertainty between now and then, but given how many of you know or suspect this is coming, we wanted you to be prepared,” he wrote.
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Risher said the cuts are necessary to create “a faster, flatter company where everyone is closer to our riders and drivers.”
“We need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth,” he added. “We intend to use these savings to invest in competitive pricing, faster pick-up times, and better driver earnings. All of these require us to reduce our size and restructure how we’re organized.”
The cuts come days after Risher took the helm at Lyft on April 17. The former Microsoft and Amazon executive became CEO after Lyft’s co-founders, Logan Green and John Zimmer, announced they were stepping back from executive management roles.
In November, Lyft announced it was laying off 13% of its staff to cut costs as the company faced the prospect of an economic recession. Several other companies have announced similar measures since the start of the year, including Tyson Foods, Amazon, Meta, McDonald’s and Disney.