APRIL 21, 2023 — UP TO 30% OF THE WORKFORCE TARGETED
Using the “stay at home layoff model,” the company has announced a company-wide restructuring and reduction in force of 26% of the company’s workforce.
Lyft is targeting 1,072 employees, or 26% of its workforce, in one of the first steps by the new Chief Executive David Risher,
The company is also eliminating more than 250 open positions and eliminating three layers of management from 8 to 5, and dividing its rideshare business into three core teams.
CEO David Risher…
Hi Team,
At our first all-hands meeting a few weeks ago, you asked me about layoffs and I said they were in the air. Now 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.
Next Thursday, April 27, by 8:30 am Pacific Time / 8:30 am local time in Eastern Europe, we’ll send an email with details on your employment status. All offices will be closed on Thursday, including Flexdrive locations. (TBS warehouses will stay open.) I know this creates uncertainty between now and then, but given how many of you know or suspect this is coming, we wanted you to be prepared. Unfortunately, your manager won’t have additional information to share before Thursday.
Here’s why I’ve made this decision. As you’ve heard me say, great companies have purpose. Lyft has two purposes that are linked to each other: We help riders get out and about so they can live their lives together, and we provide drivers a way to work that gives them control over their time and money.
We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on this purpose. And we need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth. We intend to use these savings to invest in competitive pricing, faster pick-up times, and better driver earnings. All of these require us to reduce our size and restructure how we’re organized.
I own this decision, and understand that it comes at an enormous cost. We’re not just talking about team members; we’re talking about relationships with people who’ve worked (and played) together, sometimes for years.
Lyft is full of talented, purpose-driven people, and I know those who are leaving will go on to do great things. I’m grateful for all you have brought to Lyft and regret that this is one of my first decisions as CEO.
With these changes, we have the opportunity to become the customer-focused, large-scale, profitable business we should be. It is important that we succeed: Drivers and riders want two strong companies in the market. We’re improving the lives of both. Our purpose will drive us as we create an extraordinary company together.
David
NOVEMBER 16, 2022 — Original post…
San Francisco, California-based Lyft, the transportation technology company offering ride-hailing, vehicles for hire, motorized scooters, a bicycle-sharing system, rental cars, and food delivery, has announced a 13% reduction in force.
The reduction in force will impact approximately 700 employees.
According to a company statement, "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.
"Despite efforts to avoid this day, we’ve made the difficult decision to lay off 13% of the team. Additionally, we are pursuing a divestiture (sale) of our first-party vehicle service business, and in that case, we do expect most of those team members will be offered roles from the acquiring company. We know today will be hard. To help provide initial context, we want to share how we made this decision, how we’re supporting departing team members, and what to expect over the coming days."
"The layoffs impact every organization in the company, and were based on deprioritized initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory"
"We are confident in the overall trajectory of the business. It was important to take these proactive actions to ensure we can accelerate execution, stay focused on the best opportunities to drive profitable growth, and deliver strong business results in 2023 and beyond."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?