Lyft joins the long list of companies laying off employees in preparation for what it calls a “probable recession.”
According to Fast Company, Lyft CEO Logan Green and President John Zimmer called employees to an all-hands meeting.
“We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up,” the executives wrote in an email announcing the meeting. “We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives. Still, Lyft has to become leaner, which requires us to part with incredible team members.”
“We are not immune to the realities of inflation and a slowing economy. We need 2023 to be a period where we can better execute without having to change plans in response to external events — and the tough reality is that today’s actions set us up to do that,” Zimmer and Green added. “It’s our responsibility to take ownership of these decisions and, in the end, protect the future we’re building for the drivers and riders we serve.”
The company says it will give workers 10 weeks of pay, assistance finding other jobs, and healthcare through April 2024.