Ride-hailing service, Lyft has announced that it is laying off 17 percent of its employees as its revenue has taken a hit from the coronavirus pandemic.

 

Lyft said the layoffs are part of an effort to reduce its operating costs and adjust cash flows. It says this is due to the “ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the company’s business.”

 

Lyft chief executive, Logan Green in an email to employees announced the “difficult news”. The company will also be furloughing five percent of its staff and will be reducing salaries for three months.

 

 

“The COVID crisis has taken an enormous toll on the entire world. Our guiding principle for decision-making is to ensure we emerge from the crisis in the strongest possible position to achieve the company’s mission,” he wrote.

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The layoffs translate to about 1,000 jobs with an additional 288 employees being furloughed, Lyft said. The rest of its employees will take 10 percent pay cuts. Senior executives and vice-president will face cuts of up to 30 and 20 percent of their salaries respectively.

 

“It is now clear that the COVID-19 crisis is going to have broad-reaching implications for the economy, which impacts our business. We have therefore made the difficult decision to reduce the size of our team.

 

“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,” Green said in a statement.

 

Ride-hailing services like Lyft and Uber have taken huge financial hits due to the pandemic. Millions working from home resulted in a drastic drop in rides which also translates into a lack of substantial revenue.

 

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