Lyft to lay off 683 employees in cost-cutting push

Nov 3 (Reuters) – Lyft Inc (LYFT.O) stated on Thursday it could lay off 13% of its workforce, or about 683 employees, in the ride-hailing agency’s newest cost-cutting step to address a weakening financial system.

As decades-high inflation hits client spending and drives up prices for companies, corporations throughout sectors are reducing jobs and downsizing their operations to protect earnings.

Lyft’s newest transfer is anticipated to consequence in a cost of between $27 million and $32 million in the fourth quarter. It follows 60 job cuts earlier this yr and a hiring freeze in September.

The firm, which is slated to report third-quarter outcomes on Monday, stated the layoffs wouldn’t affect its beforehand issued forecast for the interval. It expects income of $1.04 billion to $1.06 billion and adjusted core revenue of $55 million to $65 million.

The San Francisco, California-based firm’s shares had been down 1%.

“The announced reduction in force is a proactive step as part of the company’s annual planning,” Lyft stated in a press release.

Companies akin to Lyft and Uber Technologies Inc (UBER.N), which depend on gig employees, have these days confronted considerations {that a} Labor Department proposal searching for to restrict using unbiased contractors might drive up prices.

But consultants consider that authorized challenges and enterprise teams lobbying for modifications might derail the Biden administration’s efforts.

Reporting by Nivedita Balu and Akash Sriram in Bengaluru; Editing by Devika Syamnath

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