Lyft Has Fired 36% of Workers Since November

Ride-sharing titan Lyft recently announced its decision to cut 26% of its workforce, which is roughly 1,072 employees, in an effort to lower operating expenses.  When the 13% reduction in its workforce from November is factored in, the company has cut 36% of its staff in roughly six months. 

“The plan involves the termination of approximately 1,072 employees, representing 26% of the Company’s employees. The Company has also decided to scale back hiring and has eliminated over 250 open positions,” the company said during a regulatory filing on April 27, 2023.

The filing revealed that Lyft expects  incurring roughly $41 million to $47 million in restructuring costs and other charges connected to employee severance and benefits. These costs are expected to be reported in the second quarter. 

Altogether, the April and November layoff announcements point to a 36% workforce reduction for Lyft in the last six months.

In the fall of 2022, Lyft CEO Logan Green and President John Zimmer sounded the alarms about a “recession” occurring in 2023 and surging ride-share insurance costs as the main factors for the employment reductions. 

Since its initial public offering in early 2019, Lyft’s stock has plummeted by 86%.This is perhaps not the last of the economic woes that companies like Lyft will be facing in the next few years.

Due to the US’s massive regulatory apparatus and its loose monetary system, its economy is built on a house of cards. At any given moment, this entire structure could come down. 

If the US wants to have a more sustainable economic future, it must get its monetary policies right by tightening central bank measures or even abolishing the system altogether, while putting the entire regulatory state on a diet.

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