Lyft CEO Logan Green (R) and President John Zimmer (2nd R) speak before the Nasdaq opening bell celebrating the company’s initial public offering (IPO) on March 29, 2019 in Los Angeles, California.
Mario Tama | Getty Images News | Getty Images
Lyft said Thursday it’s cutting 13% of its workforce, impacting all teams.
In an email to employees obtained by CNBC, CEO Logan Green and President John Zimmer pointed to what they called “a probable recession sometime in the next year” and rising rideshare insurance costs. But Lyft is not currently changing its guidance that it gave last quarter.
Shares of Lyft were down more than 2% Thursday. Shares have fallen 68% year-to-date, which has brought its market cap under $5 billion.
Lyft said it currently has just over 5,000 employees.
Green and Zimmer said in the email that the layoffs “were based on deprioritized initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory.”
For laid off workers, Lyft promised ten weeks of pay, healthcare coverage through the end of April, accelerated equity vesting for the November 20 vesting date and recruiting assistance. Workers who had been there for more than four years will get an extra four weeks pay, they added.
“We are not immune to the realities of inflation and a slowing economy,” Green and Zimmer wrote. “We need 2023 to be a period where we can better execute without having to change plans in response to external events — and the tough reality is that today’s actions set us up to do that.”
This story is developing. Check back for updates.