Lyft cuts 13% of employees, citing economy, insurance costs

Carpooling service Lyft cuts 13% of its employees, the company announced Thursday.

“Lyft needs to get leaner, which forces us to part ways with amazing team members,” co-founders Logan Green and John Zimmer wrote in a blog post. “Layoffs impact all organizations across the business.”

Employees who lost their jobs will receive 10 weeks of pay, health insurance coverage until April 30, 2023, and recruitment assistance. Employees who have been with Lyft for more than four years will also receive an additional four weeks of pay on top of the 10 weeks.

The company said several economic challenges, such as a looming recession next year and rising ride-sharing insurance costs, factored into the decision.

Lyft also said it’s not the first time this year it’s taken steps to cut costs.

“We’ve been working hard to cut costs this summer,” the co-founders wrote. “We slowed down, then froze hiring; reduces expenses; and suspended less critical initiatives.”

The company also announced that it was looking to sell its first-party vehicle service business.

“We need 2023 to be a time when we can execute better without having to change plans in response to outside events,” the co-founders wrote. “The harsh reality is that today’s actions prepare us to do just that.”

Lyft shares have fallen more than 60% year-to-date, and its market capitalization is just under $5 billion as of Thursday.

To learn more, check out the latest news on potential layoffs on Twitter, whether or not we are already in a recession and ways to protect your money in the months ahead.

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