Lyft tightens its belt, laying off 17% of its workforce. There’s now been a clear downward trend over the past 8 weeks, ever since a whooping 100 startups cut jobs during the week of 4/1-4/7. The layoffs, which the company announced in a filing with the Securities and Exchange Commission on Wednesday, come as the company’s larger rival, Uber, is reportedly also contemplating steep cuts of its own.
Lyft recently waded into deliveries for the first time in an attempt to generate a new revenue stream. Lyft will announce its Q4 2019 results on February 11, in about two weeks. Lyft’s executive team will take a 20–30 percent pay cut, while all other non-furloughed employees will see their salaries reduced by 10 percent. After peaking in mid-May, the number of new employees laid off from tech startups has declined to its lowest level since the beginning of the coronavirus pandemic. Our live Layoffs Tracker is tracking all startup layoffs, and has now tallied over 42,000 employees laid off across 374 companies. ", The news comes one day after tech news site The Information, Both companies have a history of steep losses and, Lyft has been attempting to shift toward delivery, an area it had not previously embraced -- unlike Uber, which has its Eats food delivery service. "It is now clear that the COVID-19 crisis is going to have broad-reaching implications for the economy, which impacts our business," said Lyft CEO Logan Green in a statement provided to CNN Business regarding the layoffs. Square has managed to avoid a layoff so far, but remains exposed to small business customers in food and retail that have been shutting down en masse.
During that same 5-week period, the number of new employees laid off per week dropped from 7,692 to 6,562, a decline of just 15%. The CEO’s letter to staff strongly hints that more cuts are coming in the next two weeks.
In fact, 4 of the 10 biggest tech layoffs since COVID-19 have occurred in just the past two weeks.
Unfortunately, the number of employees laid off has not benefited from a similar trend.
Aug 1, 2019 Bookmark. As states ease months-long lockdown restrictions, the tech sectors hit hardest by layoffs (like transportation, travel, and retail) may finally be recovering. See below link for an opt-in list of Lyft employees laid off, including 35 engineers. Weeks ago, recognizing the decline in ride activity spurred by the public health crisis, Lyft. In total, 490+ startups have now laid off 63,000+ employees during the coronavirus pandemic, according to the Layoffs.fyi Tracker.
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This morning, Uber announced it was laying off 3,700 employees (14%) in its customer support and recruiting teams. Share with, Startup layoffs decline to lowest level since mid-March, Startup layoffs slowing down, but more employees laid off on average, Uber and Airbnb’s layoffs rank as two of the biggest in tech since COVID-19. The number of startups cutting jobs continues to fall as well. Update April 29th, 2:34 pm ET: A spokesperson for Lyft said in a statement: “It is now clear that the COVID-19 crisis is going to have broad-reaching implications for the economy, which impacts our business.
“And if I can’t get too low, then I can’t get too up.”.
The layoffs have hurt sales and customer success roles most. Small wonder that in the first half of May, it’s felt like dominoes falling when it comes to late-stage startup layoffs. Mirroring the trend in tech layoffs, nationwide unemployment filings also recently reached its lowest weekly level since mid-March. The company says it will also furlough 288 employees and reduce salaries for exempt employees for a three month period. Stitch Fix laid off 1,400 workers just last Monday. Lyft and Uber’s revenue have fallen by more than 50% as a result of the coronavirus pandemic. At the time, smaller travel startups like Lola, Remote Year, and WanderJaunt were laying off dozens of employees each even though the likes of Airbnb and TripAdvisor hadn’t yet cut staff. But once the smoke clears from those layoffs, will we finally see some ecosystem renewal? Lyft said it will lay off nearly 1,000 employees, or about 17 percent of its workforce, as the novel coronavirus pandemic continues to decimate the already cash-strapped ride-hailing industry. The Layoffs.fyi Tracker has counted 430+ startups that have laid off 50,000+ employees since the coronavirus was declared a pandemic, though there are hundreds more layoffs that haven’t been reported publicly. And Lyft announced that rides booked grew 26% in May compared to April. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
Unfortunately, more big layoffs are still to come. In the early weeks of the coronavirus pandemic, smaller cash-strapped startups were the first to conduct layoffs to avoid going out of business.
Layoffs.fyi Tracker: Tracks all post COVID-19 startup layoffs, Layoffs.fyi Blog: Tech layoff news and lists of laid-off employees, Hoping to help those laid off get exposure to companies still hiring, Weekly newsletter of tech layoff news and lists of laid-off employees, Seen a layoff list and want to help the affected people? Later-stage startups and recently-public tech companies had more buffer to hold off on layoffs due to their larger cash reserves. Including today’s layoff, Uber has cut 6,700 employees in May alone. Of course, Lyft’s ride-sharing business has plummeted as health officials instruct people to avoid unnecessary travel. Rival Uber is reportedly discussing a layoff as well (to the tune of 5,000 people), though those cuts have not been finalized. Only 16 startups conducted layoffs during the week of 5/27-6/2. All rights reserved. Our previous analysis showed that 2/3 of startup employees laid off have come from industries directly affected by shelter-in-place, such as transportation, travel, real estate, food, and fitness.
Members of Lyft’s board of directors have voluntarily agreed to forgo 30 percent of their cash compensation for the second quarter of 2020.
Yesterday, Airbnb laid off 1,900 employees (25%) across all teams. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. The media has also started selectively covering only the bigger startup layoffs, as layoffs have gotten too frequent to keep up.
(CNN Business)Lyft plans to cut nearly 1,000 staffers and furlough hundreds more as it grapples with the impact of the ongoing pandemic on people using its ride-hailing services. 914 2 3. So he walks to school, This company makes sure you never run out of coffee, Restaurant owner: We're back where we started in March, Here's how a Covid-19 vaccine could help the global economy, Broadway worker: My career of 15 years vanished overnight, As pet adoptions soar, this dog toy company is thriving, Mom of three: They shouldn't have to worry how we can eat the next day, Ohio mom facing eviction: I'm just thinking about my kids, Furloughed worker: 'I'm at the top of the roller coaster with no harness', Mom juggling work and remote learning: I can't maintain this, The vaccine race: Firms face unprecedented challenges, Lyft is tapping more drivers to help with delivery of essential items. Lyft, the ridesharing startup, laid off 982 employees (17%) yesterday and furloughed 288 more.
“I had a rule that even in our darkest of hours I wouldn’t get too low because that’s just a moment in time,” Airbnb CEO Brian Chesky told Bloomberg. As a recession looms, Lyft and Uber are looking at ways to stay afloat. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. We’re still trying, though! SF Bay Area ∙ 982 employees (17%) ∙ All departments. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Of the 10 biggest tech layoffs since the coronavirus was declared a pandemic, 6 of them have occurred in the past month. This represents the lowest weekly number since the week of 3/18-3/24, and is 68% lower than the pandemic peak 2 weeks ago. Factset: FactSet Research Systems Inc.2018. Lyft, the ridesharing startup, laid off 982 employees (17%) yesterday and furloughed 288 more. Though recent signs look promising, people are still tempering their expectations. Rival Uber is reportedly discussing a layoff as well (to the tune of 5,000 people), though those cuts have not been finalized. Best wishes to those affected and here’s hoping that we reach the bottom soon. lyft layoff likelihood for non-tech (Biz Ops/Strategy roles) looking to hear from some Lyft insiders, alums on how likely layoffs are for the above teams and how it has been historically. Although both the number of layoffs and the number of employees laid off have been falling, the average layoff has gotten bigger.
Lyft plans to cut nearly 1,000 staffers and furlough hundreds more as it grapples with the impact of the ongoing pandemic on people using its ride-hailing services. "Our guiding principle for decision-making right now is to ensure we emerge from the crisis in the strongest possible position to achieve the company's mission. It has also furloughed about 288 employees on top of that. Lyft is part of a group of once highflying tech start-ups that held disappointing initial public offerings last year and are now dealing with questions about whether they can turn a profit. The company’s rides business has dropped by 75 percent, according to The Information. Lyft’s revenue after paying drivers is likely to be less than $150 million a month currently, down from about $260 million a month during the first quarter of last year, the publication reports. WeWork, which has already cut thousands of employees across multiple rounds of layoffs, expects to continue making cuts through the end of May. They’ve now also had enough time to properly budget, plan, and execute their layoffs, something that takes longer at a 4,000-person company than a 40-person one. And the overall unemployment rate unexpectedly fell last week, a major surprise compared to prior forecasts. newsletter.
Disclaimer. Will there be another round of layoffs in the next three months at Lyft? Uber just announced another mass layoff today, and WeWork expects to continue performing rolling layoffs through the end of the month. Lyft said it will lay off nearly 1,000 employees, or about 17 percent of its workforce, as the novel coronavirus pandemic continues to decimate the already cash-strapped ride-hailing industry.
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