Lyft Layoffs 2022: What to Know About LYFT Job Cuts
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Lyft (NASDAQ:LYFT) stock is on the move Friday after the ride-sharing company revealed plans to cut more jobs.
This has Lyft cutting 13% of its workforce, which is the second time the company has reduced its headcount since July. The latest job cuts will see it reduce its employees by 683. That’s the result of the company seeking to reduce operating costs.
It expects to suffer a charge of $27 million to $32 million for the layoffs. Lyft says that it will incur these charges during the fourth quarter of the year. However, it isn’t updating its Q4 guidance and still expects strong results.
What’s Behind the Job Cuts?
Lyft CEO Logan Green and President John Zimmer sent a letter to employees about the layoffs. It was obtained by CNBC and a portion of it reads as follows.
“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.”
The latest Lyft news comes as several tech companies have taken to laying off employees or freezing hiring. This comes as economic pressure continues to push these companies toward cost-saving methods.
LYFT stock is down slightly as of Friday morning.
There’s more stock market news traders will want to know about below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2022/11/lyft-layoffs-2022-what-to-know-about-lyft-job-cuts/.
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