New Lyft CEO David Risher announces plans to lay off hundreds of workers
The ride-hailing service Lyft is preparing to lay off hundreds of employees just days after its new CEO, David Risher, began steering the company with an eye toward 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 on Friday that a “significant” number of them will lose their jobs. The message came at the end of his first week as Lyft’s CEO.
The note did not 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 did not 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 an 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 does not 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
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