Lyft is laying off 982 employees, furloughing a further 288 due to COVID-19 pandemic
Less than 24 hours after it was reported that Uber was considering layoffs of 20% of staff, its big rival Lyft is announcing its own cuts.
Today the company said it would be reducing employee count by 17%, working out to 982 employees, and furloughing an additional 288, due to the affects of the COVID-19 pandemic and its impact on Lyft’s business.
It will also put in place salary reductions of 30% for executive leadership, 20% for vice presidents and 10% for all other employees, while members of Lyft’s board of directors will forego 30% of their cash compensation for the second quarter of 2020.
Lyft said that it will take a restructuring charge of between $28 million and $36 million as a result, which will come through in its Q2 financials.
The news comes in the wake of technology sector layoffs now crossing 32,221 people since March 11. Transportation has been hit in a particularly tough way, in part because people are not moving around as much due to stay-at-home orders; and in part because of the worries of infection that people have around driving in vehicles in close quarters where others have been.
More to come.
Less than 24 hours after it was reported that Uber was considering layoffs of 20% of staff, its big rival Lyft is announcing its own cuts. Today the company said it would be reducing employee count by 17%, working out to 982 employees, and furloughing an additional 288, due to the…
