Breaking News

Lyft is laying off nearly 1,000 employees — 17% of its workforce — as the coronavirus sends ride-hailing industry into a nosedive (LYFT)

Lyft IPO Nasdaq bell
  • Lyft is cutting nearly 1,000 jbs and furloughing 288 others, it said Wednesday. 
  • Both Lyft and its larger competitor Uber have seen ride-hailing volumes plummet amid the coronavirus pandemic. 
  • Shares of Lyft were up more than 5% in trading Wednesday, outpacing broader market gains. 
  • Visit Business Insider's homepage for more stories.
Lyft said Wednesday that it plans to terminate "approximately 982" employees and has furloughed 288 others as the coronavirus pandemic wreaks havoc on the ride-hailing industry.
Collectively, the job cuts and furloughs represent more than 20% of Lyft's last reported headcount of 5,683 employees at the end of 2019. The layoffs will cost the company between $28 million and $36 million in severance payments and other expenses, it said in a filing with US regulators.
Lyft also said that its executive leadership is taking a 30% pay cut, with vice presidents seeing a 20% reduction and "all other exempt employees" taking a 10% cut. Members of the company's board of directors "have voluntarily agreed to forego 30% of their cash compensation for the second quarter of 2020," Lyft said.
The coronavirus pandemic has had an outsized effect on Lyft, and to some extent its larger competitor Uber, as stay-at-home orders around the world drastically reduce demand for on-demand car rides.
Shares of the company were up more than 5% in trading Wednesday, outpacing broader market gains.
This story is developing…
Join the conversation about this story »
NOW WATCH: We tested a machine that brews beer at the push of a button

* This article was originally published here Press Release Distribution

Source -

No comments