Ride-sharing app Lyft announced on Friday that it would lay off a significant number of its employees one week into new CEO David Risher’s tenure. Risher, a former Amazon executive, informed Lyft employees via email that the layoffs were part of a restructuring to better meet the needs of riders and drivers. Lyft did not disclose the specific number of cuts, but the Wall Street Journal reported that at least 1,200 workers, or around 30% of its 4,000-person workforce, would be impacted.

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Risher's focus on creating a better experience for riders and drivers

David Risher, who took over as CEO on April 17, has made it clear that his focus is on creating a great and affordable experience for riders while improving drivers’ earnings. In a town hall with employees a few weeks ago, Risher had already hinted that layoffs were imminent. The restructuring would allow Lyft to become a faster and flatter company, with employees closer to riders and drivers to deliver on this purpose, Risher wrote in the email to Lyft employees.

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Tech layoffs continuing in 2023

Tech layoffs have been a trend in recent times, and Lyft is the latest company to join the ranks of those affected. Meta, Amazon, Google, Microsoft, and many other tech companies have collectively laid off over 172,000 employees in 2023, according to layoff tracker Layoffs.fyi. The announcement of Lyft’s restructuring came after Meta implemented a previously announced round of cuts earlier this week.

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Restructuring won’t impact previously issued guidance

Despite the layoffs, Lyft said that the restructuring would not impact its previously issued guidance. Lyft is set to report earnings for the first quarter of 2023 on May 4. On the news of the layoffs, Lyft's stock remained unchanged. Lyft had previously reduced its headcount in November, cutting 700 jobs or around 13% of the workforce.

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