A second social plan in six months will affect Lyft in the United States. The Uber competitor announced on Friday April 21 that it was going “significantly reduce” its teams to reduce its costs and try to become profitable.
“I confirm that we will significantly reduce the size of the team as part of a restructuring in order to better meet the needs of passengers and drivers”said the boss, David Risher, in a message addressed to the employees, and published Friday on the site of the company of San Francisco (California).
According to wall street journal which already revealed the new layoffs earlier today, Lyft, which has more than 4,000 employees, could lay off 30% or more of its staff. This measure should enable it to reduce its costs by half.
The car rental platform with driver has already laid off nearly 700 employees in November 2022 (about 13% of its workforce at the time). The company’s co-founders, Logan Green and John Zimmer, spoke at the time about the risk of recession and the rising cost of ride-sharing insurance.
$1.6 billion in net losses in 2022
“We need to be a faster company, with fewer layers, where everyone is closer to our passengers and drivers”, justified David Risher. The cost reductions should allow the application to lower the price of the journeys, improve the income of the drivers and generate “profitable growth”.
Lyft, which has not diversified like Uber into delivering meals and other products, suffered $1.6 billion (about 1.45 billion euros) in net losses in 2022.
From Snap to Stripe to Google to Meta, most major Silicon Valley companies have implemented layoffs in recent months after hiring heavily before and during the pandemic. Like many other companies in other industries, they are facing adverse economic conditions, including rising interest rates to fight inflation.