Lyft stated it would lay off practically 1,000 staff, or about 17 % of its workforce, because the novel coronavirus pandemic continues to decimate the already cash-strapped ride-hailing trade. The layoffs, which the corporate introduced in a submitting with the Securities and Trade Fee on Wednesday, come as the corporate’s bigger rival, Uber, is reportedly additionally considering steep cuts of its personal.
Lyft says it would terminate 982 staff, which it anticipates will price between $28 million to $36 million in “restructuring and associated prices primarily associated to worker severance and advantages prices,” the submitting states.
The corporate says it would additionally furlough 288 staff and cut back salaries for exempt staff for a 12-week interval. Lyft’s govt workforce will take a 20–30 % pay lower, whereas all different non-furloughed staff will see their salaries diminished by 10 %. Members of Lyft’s board of administrators have voluntarily agreed to forgo 30 % of their money compensation for the second quarter of 2020.
Lyft’s ride-hailing enterprise has dried up because of widespread shutdown orders because of the pandemic.