Lyft to lay off 1,200 employees

The company will reduce its workforce by 30% following the arrival of a new CEO. It argues that this will help reduce costs by 50%.

Ride sharing company Lyft will lay off around 1,200 employees, equivalent to 30% of its total workforce. The company argues that this decision will help reduce its costs by approximately 50%.

As reported by The Wall Street Journal, Lyft will communicate the layoff to those affected next week after an executive meeting is held. This reduction in its workforce comes just days after David Risher was named CEO, succeeding Logan Green, the company's co-founder. At the end of last year, the transportation company laid off 700 employees.

A Lyft spokesperson said the new director "has made clear to the company that his focus is on creating a great and affordable experience for riders and improving drivers’ earnings. To do so requires that we reduce our costs and structure our company so that our leaders are closer to riders and drivers."