Lyft announces latest wave of layoffs

Ride-sharing service Lyft is the latest company to announce a round of layoffs, CEO David Risher told employees in an email Friday.

Risher, who took over as CEO earlier this month, said in the email that Lyft will “significantly reduce the size of the team” and let employees know their employment status by next Thursday. He added the decision to cut jobs is because Lyft needs to be a “faster, flatter company,” which they can help achieve by cutting costs, like jobs.

“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,” Risher said in the email. “Unfortunately, your manager won’t have additional information to share before Thursday.”

The Wall Street Journal reported Lyft will be cutting 1,200 jobs, according to people familiar with the plans. A Lyft spokesperson declined to comment on the number of jobs cut to The Hill, saying the company has no additional details on the matter.

“David has made clear to the company that his focus is on creating a great and affordable experience for riders and improving drivers’ earnings,” a spokesperson for Lyft said in a statement. “To do so requires that we reduce our costs and structure our company so that our leaders are closer to riders and drivers.”

“This is a hard decision and one we’re not making lightly. But the result will be a far stronger, more competitive Lyft,” they added.

Risher said in the email the job cuts will set up Lyft to “invest in competitive pricing, faster pick-up times, and better driver earnings.”

“With these changes, we have the opportunity to become the customer-focused, large-scale, profitable business we should be,” he wrote. “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,” Risher said.