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Ride-sharing company Lyft plans to reduce about 1,200 jobs.
CEO David Risher announced the downsizing that could affect about 30% of the company’s workforce in an email about a week into his stint at the helm of the company.
The layoffs would impact at least 1,200 employees, around 30% of the company’s 4,000-person workforce, the Wall Street Journal reported. However, a company spokesperson refused to confirm the numbers, according to a CNBC report.
“I’m confirming that we will significantly reduce the size of the team as part of a restructuring to focus on better meeting the needs of riders and drivers,” Risher’s email to the staff said after moving from Amazon to Lyft.
Lyft previously reduced about 700 jobs or 13% of the workforce in November 2022.
“We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on this purpose,” Risher said in the note.
Lyft has struggled since its 2019 IPO against main competitor Uber while its share price which debuted at $72 has slumped to $10.
The company’s restructuring has come amid sweeping role reductions of big tech companies across the board. Meta implemented a previously announced round of job cuts last week. Among the other big names that have reduced their headcount are Amazon, Google, and Microsoft, with the total job cuts in tech companies rising to 172,000 employees in 2023.