Lyft CEO slashing jobs as ride-sharing company struggles
Ride-hailing company Lyft is “significantly reducing” its workforce as it faces difficulty in generating a profit, according to David Risher, the company’s new CEO.
What’s happening: Reuters confirmed that this round of layoffs affects 1,072 employees.
- This represents approximately 26% of its entire workforce, a number that Lyft has not yet confirmed.
- Risher sent a memo to staff on April 21 explaining that the cuts are designed to make Lyft a “faster, flatter company where everyone is closer to our riders and drivers.”
- “I own this decision and I understand that it comes at an enormous cost.”
- A Lyft spokesperson said that “the result will be a far stronger, more competitive Lyft.”
Further explanation: The layoffs come as Lyft faces ongoing challenges related to the economy and stiff competition.
- Lyft previously let 60 employees go in July 2022, and cut as many as 700 jobs in November 2022.
- The company hasn’t kept up with Uber’s efforts to diversify its business by expanding into meal and grocery delivery. Uber’s most recent earnings report marks its strongest quarter ever.
- Lyft’s shares are down roughly 70 per cent from this time last year.
- Risher was made CEO in April following the departure of co-founders Logan Green and John Zimmer. Risher was a longtime senior employee at Amazon who was originally hired as the company’s 37th employee.
Exit packages: Lyft’s memo to staff identifies support for terminated employees, likely those working in the United States.
- At least 10 weeks of pay, with more for employees with over four years of service.
- Healthcare coverage through October 31, 2023.
- Accelerated equity vesting for the May 20 vesting date.
- Career resources and counselling.
Impact on Canadian staff
Lyft’s layoffs may include a number of Canadian employees, however the full impact is currently unclear as the company has not confirmed any cuts.
If you’re a non-unionized employee, check out our Lyft Layoffs guide.
You can also use our free Pocket Employment Lawyer tool for real-time insights.
📺 WATCH: Everything You Need to Know About Mass Terminations
Lost Your Job? Get Help Now
📞 Contact Samfiru Tumarkin LLP: 1-855-821-5900 or request a consultation online.
Our experienced employment lawyers in Ontario, Alberta, and British Columbia (BC) have helped tens of thousands of non-unionized individuals resolve their workplace issues, including wrongful dismissals.
If you’ve lost your job at Lyft for any reason, don’t panic. We can review your situation, assess your legal options, and help you secure the compensation you’re legally entitled to.
Contact your union immediately. By law, employment lawyers can’t represent unionized employees.
About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
More about Lior SamfiruRelated Posts
Rewind Layoffs in Canada: Employee Rights, Severance Pay, and What You Need to Know
Rewind layoffs in March 2023 affected 37 employees. Learn your rights, severance pay entitlements, and what Rewind staff should do next.
List of Insurance Companies in Ontario (2025 Guide)
Full list of insurance companies in Ontario, including car, auto, life, home, and disability insurers. 2025 guide for Ontario residents.
Can an Employer Threaten an Employee With Termination in Ontario?
Can an employer threaten termination in Ontario? Learn when its illegal, what counts as retaliation, & what to do if you’re pressured…