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Lyft Laying Off Nearly 700 Workers

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Lyft Laying Off Nearly 700 Workers

(CTN News) – There’s a 13% headcount cut at Lyft, the ride-hailing company announced Thursday.

Logan Green and John Zimmer stated in a memo that the layoffs will “impact every organization within the company.” According to its most recent quarterly filing, the ride-sharing company had 5,000 employees at the end of June.

Layoffs were based on reprioritization initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory. In addition to a looming “probable” recession and rising insurance costs, they identified “several challenges” across the economy.

The New York Post reported in September that Lyft would halt hiring until the end of the year for all U.S.-based positions.

Employees affected by the layoffs announced Thursday will receive at least 10 weeks of pay, with those who have worked for Lyft for more than four years getting an additional four.

As well as health insurance through April, career assistance, and an accelerated equity vesting schedule, they will also receive benefits.

According to a filing with the Securities and Exchange Commission, Lyft expects the layoffs to result in costs of approximately $27 million to $32 million.

As part of its cost-cutting efforts, Green and Zimmer said the company plans to sell its first-party vehicle service business. In accordance with the memo, employees who hold positions in that segment are expected to be employed by the company that acquires the business.

Lyft’s co-founders stated that inflation and a slowing economy are realities that cannot be ignored. We need 2023 to be a period during which we can better execute without having to alter our plans in response to external circumstances – and today’s actions have set us up to accomplish this.”

According to Lyft, its outlook for the third quarter remains unchanged. A statement detailing the company’s third-quarter results will be provided by the company on Monday.

Is Lyft or Uber cheaper?

Uber can be less expensive than Lyft for the average journey—research suggests that Uber is the cheaper company, with the average trip costing $20 compared with the $27 you would spend for an average Lyft trip. Also, Uber can be used around the world, whereas is only available in the U.S. and Canada.

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