Lyft, the ride-hailing app, has announced that it will lay off 1,072 employees, which accounts for approximately 26% of its corporate workforce, and will not be hiring an additional 250 positions, according to an SEC filing released on Thursday.
This news comes a week after a memo from new Lyft CEO David Risher confirmed that the company would be reducing its headcount.
The company currently has around 4,000 employees and already had a 13% headcount reduction in November 2022. Despite the layoffs, Lyft shares did not see much movement.
Risher, who began his tenure as CEO in April, has stressed the need to streamline operations and better serve riders and drivers.
Lyft co-founders Logan Green and John Zimmer remain on the board, having led the company through its initial public offering in 2019 and subsequent growth.
The company’s stock has never risen above its debut price and is down approximately 8% year-to-date.
Due to the ongoing economic slowdown, tech companies have been hit hard, with over 184,000 tech employees losing their jobs in 2023 alone, according to data from Layoffs.fyi.