May 2020 \ Business & Investment \ BUSINESS AND GOVERNANCE
Uber, Lyft to cut workforce globally

After the news of ride-hailing firm Uber laying ...

  • Mr Dara Khosrowshahi

After the news of ride-hailing firm Uber laying off 20 per cent of its workforce—more than 5,400 of 27,000 employees—came amid COVID-19 pandemic, its rival Lyft in April announced the termination of 982 employees, representing 17 per cent of its workforce, along with furloughing 288 employees and salary cuts for the rest.

Lyft said it aims to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the company’s business. The ride-hailing also implemented reductions in base salary for exempt employees for a 12-week period, beginning May, in the range of 10-30 percent.

“The company estimates that it will incur approximately $28 million to $36 million of restructuring and related charges primarily related to employee severance and benefits costs, the majority of which the company expects to incur in the second quarter of 2020,” Lyft said in a filing with the US Securities and Exchange Commission (SEC).

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