Lyft, the ride-hailing service, is reportedly preparing to lay off a significant number of its workforce. This comes shortly after the company hired a new CEO, David Risher, who is determined to decrease costs and bring fares more in line with rival service, Uber. According to sources, at least 1,200 employees are expected to lose their jobs, but Lyft has declined to provide specific details.
Risher has cited expense control as a primary objective, stating that Lyft needs to become more efficient in order to lower fares and win back passengers who have opted for Uber due to lower prices. These layoffs will be the second round of cuts for Lyft, who shed 700 jobs in the previous year. The move is part of a wider trend of recurring tech layoffs, which is reversing years of growth in the industry.