Lyft To Lay Off Hundreds Of Workers Right Before The Holidays
Lyft has announced it will lay off about 700 of its employees, about 13% of its workforce.
The nearly 100% chance of a recession taking place has triggered Lyft to lay off around 700 of its employees. Companies everywhere are preparing for the recession that is likely to take place and hoping to survive through the other side. Between inflation, and the impending recession, companies, and employees are facing hard times ahead.
Experts in the financial industry have given a percentage of nearly 100 for the likelihood of a recession in 2023. Companies, like Lyft, are faced with the hard decision to ensure that they survive through a likely recession. Though it is difficult to let go of so many employees, sometimes there is simply no other choice but to reduce costs and make hard decisions for the bottom line.
Lyft founders put out a memo regarding the cutback of employees. During the summer, Lyft attempted to cut spending and reduce costs in a number of different ways. The company first slowed hiring then went on to freeze hiring and paused some of its spending initiatives.
Despite all efforts to cut back and prepare for a highly probable recession, the company has decided that further action is needed. In addition to a looming recession, Lyft is facing an increase in insurance costs for ride-sharing. Between the impending recession and inflation impacting the industry, the company was practically left with no other choice but to reduce staff.
Other companies like Amazon and Stripe are following the same path as Lyft to prepare for the recession that is predicted to hit in the upcoming year. Amazon has paused hiring at the corporate level due to the current economic status and doesn’t have plans to resume corporate hiring anytime soon. Like Lyft, Stripe, which is a payment processing company, is laying off a portion of its staff to reduce costs.
Tough economic times are nearly inevitable at this point and companies in all sectors are preparing the best way that they can. Many companies do not survive recessions unless they take drastic measures and fast, which is just what Lyft is doing. Though the decision to reduce staff comes at a bad time, with holidays upon us, it is necessary for the company as a whole.
Lyft is not leaving their employees that are being laid off out in the cold though. The company has committed to providing pay for ten weeks and continuing health care through April of next year. Additionally, employees who have been with the company for more than four years will receive an additional four weeks of pay.
The company is providing support in other ways as well. Lyft will provide recruiting assistance that includes coaching for resumes and interviews to those who will be affected by the layoffs. Despite the hard decision to let go of workers, the company is proving just how much they value its employees with all the support they are offering through the transition.
Lyft has sent a valuable message to its employees and that message is that they matter and the company values them, regardless of the decision to let them go. Companies are faced with harsh realities and hard decisions everyday. Despite this difficult reality, the grace and support Lyft if providing is priceless.
