UNITED STATES NEWS

Lyft gears up to make ‘significant’ layoffs under new CEO

Apr 21, 2023, 2:14 PM

SAN FRANCISCO (AP) — Lyft is preparing to lay off hundreds of employees just days after new CEO David Risher began steering the ride-hailing service with a eye of driving down costs to help bring its fares more in line with its biggest rival, Uber.

Risher, a former Amazon executive, informed Lyft’s workforce of more than 4,000 employees in an email posted online Friday that a “significant” number of them will lose their jobs. It came at end of his first week as Lyft’s CEO.

The note didn’t specify how many people would be jettisoned, but The Wall Street Journal reported that at least 1,200 employees will be laid off. The report cited unidentified people familiar with the cost-cutting plans.

San Francisco-based Lyft didn’t immediately respond to a request for comment.

Risher, who had been a Lyft board member before being recruited to replace co-founder Logan Green, cited expense control as one of his top priorities during a interview with The Associated Press shortly after his hiring was announced. By ensuring Lyft is “super efficient,” Risher said the company would be in a better position to lower its fares to lure back passengers who had shifted to using Uber more frequently because that service was offering lower prices for the same trips.

It was a theme Risher emphasized again in his Friday email explaining why he decided to slash the payroll, which doesn’t include Lyft’s drivers — a group that is classified as independent contractors.

“We need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth,” Risher wrote.

Lyft intends to start notifying employees who will be laid off on Thursday when the company plans to close its offices.

It will mark the second round of recent job cuts for Lyft after shedding 700 workers last year.

Recurring waves of layoffs are emerging as a new phenomenon in the tech industry, reversing more than a decade of mostly unbridled growth.

Both e-commerce giant Amazon have gone through two rounds of major layoffs during the past year, largely because the pandemic fueled booming demand for digital services and products that resulted in hiring sprees that they and other tech companies began to regret as the COVID-19 threat waned and growth tapered off.

The pandemic initially walloped Lyft by drying up demand for ride-hailing services, a blow Uber was able to soften through an aggressive expansion in food delivery. That gave people a reason to continue using Uber’s app even when they were stuck at home while Lyft fell out of favor.

During the past year, it has become even clearer that consumers fell out of the Lyft habit as Uber’s ridership bounced back to pre-pandemic levels and Lyft’s losses mounted. Those struggles have caused Lyft’s stock price to plunge 69% during the past year, prompting the decision to bring in a new CEO to shake things up.

Lyft’s shares surged 6% after news of its cost-cutting plans came out to close Friday at $10.44.

United States News

Associated Press

Louisiana man who fled attempted murder trial captured after 32 years on the run

ARCADIA, La. (AP) — A Louisiana man who fled his 1991 trial for attempted murder has been arrested more than three decades later after authorities found him hiding in Mexico, authorities said. Greg Lawson, 63, was brought back to the United States on Thursday after being located in Mexico, the FBI said. Lawson was accused […]

40 minutes ago

Associated Press

Former President Jimmy Carter makes appearance at peanut festival ahead of his 99th birthday

PLAINS, Ga. (AP) — Former President Jimmy Carter and his wife, Rosalynn, on Saturday made a surprise appearance at the Plains Peanut Festival in their Georgia hometown, the Carter Center wrote in a social media post on X, formerly known as Twitter. The former president and his wife are seen in a reposted video riding […]

46 minutes ago

FILE - Evacuees from Afghanistan wait with other evacuees to fly to the United States or another sa...

Associated Press

He spoke no English, had no lawyer. An Afghan man’s case offers a glimpse into US immigration court

The Afghan man speaks only Farsi, but he wasn’t worried about representing himself in U.S. immigration court. He believed the details of his asylum claim spoke for themselves. Mohammad was a university professor, teaching human rights courses in Afghanistan before he fled for the United States. Mohammad is also Hazara, an ethnic minority long persecuted […]

2 hours ago

FILE - The hall of historic Waiola Church in Lahaina and nearby Lahaina Hongwanji Mission are engul...

Associated Press

Residents prepare to return to sites of homes demolished in Lahaina wildfire 7 weeks ago

HONOLULU (AP) — From just outside the burn zone in Lahaina, Jes Claydon can see the ruins of the rental home where she lived for 13 years and raised three children. Little remains recognizable beyond the jars of sea glass that stood outside the front door. On Monday, officials will begin lifting restrictions on entry […]

3 hours ago

Associated Press

Toddler and 2 adults fatally shot in Florida during argument over dog sale, authorities say

JACKSONVILLE, Fla. (AP) — A 3-year-old child and two adults were fatally shot late Saturday at a Florida apartment complex during an apparent dispute over the sale of a dog, authorities said. Jacksonville Sheriff’s Office Assistant Chief J.D. Stronko told reporters that five people, including the child, had gone to a luxury apartment complex at […]

4 hours ago

FILE - Archbishop Timothy Broglio conducts an Easter Sunday Mass in an empty sanctuary at Basilica ...

Associated Press

Ideological rifts among U.S. bishops are in the spotlight ahead of momentous Vatican meeting

NEW YORK (AP) — Early next month, the Vatican will open an unprecedented gathering of Catholic clergy and laypeople from around the world. The synod is intended to be a collegial, collaborative event, though the agenda includes divisive issues such as the role of women in the church and the inclusion of LGBTQ Catholics. If […]

4 hours ago

Sponsored Articles

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Importance of AC maintenance after Arizona’s excruciating heat wave

An air conditioning unit in Phoenix is vital to living a comfortable life inside, away from triple-digit heat.

Sanderson Ford...

Sanderson Ford

Sanderson Ford congratulates D-backs’ on drive to great first half of 2023

The Arizona Diamondbacks just completed a red-hot first half of the major league season, and Sanderson Ford wants to send its congratulations to the ballclub.

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Here are the biggest tips to keep your AC bill low this summer

PHOENIX — In Arizona during the summer, having a working air conditioning unit is not just a pleasure, but a necessity. No one wants to walk from their sweltering car just to continue to be hot in their home. As the triple digits hit around the Valley and are here to stay, your AC bill […]

Lyft gears up to make ‘significant’ layoffs under new CEO