Lyft Will Lay Off About 1,200 People as It Looks to Cut Costs
Lyft Will Lay Off About 1,200 People as It Looks to Cut Costs
Lyft, which has struggled financially while trying to compete with its rival, Uber, said on Friday that it was planning major job cuts.
The layoffs, which are expected next week, will affect about 1,200 people, according to a person with knowledge of the situation. It is the first significant move by David Risher, the company’s new chief executive. Mr. Risher had been considering the cuts for several weeks, the person said, even though his first official day as the company’s C.E.O. was on Monday.
“We need to bring our costs down to deliver affordable rides, compelling earnings for drivers and profitable growth,” Mr. Risher said in a note to employees. He added that money saved from the downsizing would be used to “invest in competitive pricing, faster pick-up times and better driver earnings.”
Mr. Risher said that employees would be notified next Thursday if they had lost their jobs, and that Lyft offices would be closed that day.