Lyft plans to ‘significantly reduce' workforce, CEO says
This is terrible news for the many people who will be losing their jobs, but Lyft's new CEO is trying to turn the company around.
CNN
David Risher, the new CEO of Lyft, told its employees that it plans to'significantly' reduce its workforce. This is part of another round layoffs, as the company struggles to make a profit.
Risher stated in a memo sent to all employees that the company's goal was to become a "faster and flatter company, where everyone can be closer with our drivers and riders."
Risher said, 'I am responsible for this decision and I understand the cost.' We're not talking just about team members, but about relationships between people who have worked (and sometimes played) together for years.
This announcement comes after Lyft cut 13% from its workforce in November, citing concerns about a recession.
The Wall Street Journal reported the latest job cuts will eliminate at least 1200 positions, or up to 30% of its employees. A spokesperson for Lyft declined to give details about the size of the cut.
The spokesperson stated that David has told the company his main focus is to create a great experience for drivers and riders, and improve their earnings. To do this, we must reduce our costs and restructure our company to bring our leaders closer to drivers and riders. We are not taking this decision lightly. The result will be an even stronger and more competitive Lyft.
Lyft announced that Risher will take over as CEO of the ride-hailing service in April. Logan Green and John Zimmer, who founded it, will also step down.
Risher, the 37th employee at Amazon (a company which has been a model in the on-demand sector for many years), went on to be the first head of the product department and the head of US retail.
The current challenges for Lyft, Risher and Risher are enormous. Uber has expanded its business beyond just ride-hailing to include grocery and meal delivery, but Lyft did not. This may have hurt the company in the early stages of the pandemic, when customers were less likely to travel but were more likely to order items online.
Uber has rediscovered its strength. In its latest earnings report, Uber reported that it had the'strongest quarterly ever', reporting a 49% increase in revenue year-over-year. Lyft’s most recent earnings report was a disappointment for Wall Street.
Lyft's shares rose 6% at midday Friday trading, but its stock has fallen roughly 70% in the last year.