Lyft Puts Nearly 1,000 Employees, Which Weakens As The Virus, The Demand For Rides

Lyft Puts Nearly 1,000 employees, As the Virus Weakens the demand For journeys,

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With many U.S. cities on lockdown, is the demand for trips dried up, the financial problems, the ride-hailing apps such as Lyft tightened.

Bing Guan/Bloomberg via Getty Images

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Bing Guan/Bloomberg via Getty Images

Lyft released 982 employees — to reduce by 17% of the workforce — trying to costs amid falling demand for rides. It is furloughing hundreds more workers, and cutting pay.

“It is now clear that the COVID-19 crisis, hailing the wide-reaching consequences for the economy, the impact of our business,” said Logan Green, the travel company’s CEO, in a statement. “That is why we have made the difficult decision to the size of our team. Our guiding principle for decisions now is to ensure that we achieve stronger from the crisis in a strong position, as the mission of the company.”

The pandemic exacerbated the financial problems of Lyft and larger rival Uber. Both of them were losing money even before the coronavirus hits. Then lock in the towns and cities across the U.S. decimated the demand for trips, leaving many drivers with no income.

Neither company has a complete overview of how much your revenues are suffering from the falling demand. In mid-March, Uber CEO Dara Khosrowshahi, said bookings for the entire amount the company collects in rates that were at least 60% in Seattle, one of the first U.S. cities by the virus. He said he was expecting a similar development in the other large cities such as New York, Los Angeles and San Francisco.

Both Lyft and Uber-report next week on its financial results for the first three months of the year.

in addition to the job cuts, Lyft furloughed has additional 288 employees. It cut salaries by at least 10% for all employees for three months, starting in may. Managers and Vice-presidents to take higher cuts of 30% and 20%, respectively.

Lyft said the redundancies would be

The tech Website the information reported this week that Uber, as cut is considering around 20% of the it employees, or about 5,400 employees.

A spokesman for Uber declined to comment for this report. “As you would expect, the company is looking at every possible scenario, so we to the other side this crisis in a stronger position than ever before,” he said.

note: Lyft, and Uber are among NPR’s financial supporters.

Released on Wed, 29 Apr 2020 18:22:08 +0000

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