Lyft cuts nearly 1,000 jobs due to pandemic

Lyft is laying off nearly 1,000 workers and furloughing another 288 as the coronavirus pandemic slashes its business, the company announced in a regulatory filing Wednesday.

The 982 employees it will lay off account for 17 percent of the ride-sharing giant’s workforce, Lyft said in the filing.

Lyft has also implemented base salary reductions for all other employees, as well as the 12-week-long furloughs.

Lyft CEO Logan Green said in a statement to The Hill Wednesday the layoffs were a “difficult decision.”

“Our guiding principle for decision-making right now is to ensure we emerge from the crisis in the strongest possible position to achieve the company’s mission,” he said.

The salary cuts will kick in May 1, and will include a 30 percent reduction for executive leadership, 20 percent for vice presidents and 10 percent for all other employees.

The company said it expects to take an approximately $28 million to $36 million hit from restructuring and related charges from the layoffs, primarily related to employee severance and benefits.

Lyft’s filing comes a day after the Information reported that executives at Uber had discussed plans to lay off around 20 percent of its employees.

“As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever,” a spokesperson for Uber told The Hill in response to questions about the alleged discussions.

Taken together, the confirmed and reported layoffs point toward the coronavirus pandemic hitting ride-sharing companies hard.

While both companies have sought to diversify their services amid the pandemic, such as delivering medical supplies, the drop in demand for rides with many individuals staying home appears to be causing some economic damage.

The drivers who depend on the platforms for their income have been the hardest hit, especially since they lack access to paid leave, health care and unemployment benefits enjoyed by full-time employees.

Updated at 2:50 p.m.