Lyft lays off hundreds over coronavirus losses, Uber reportedly considers similar cuts
Lyft employees will also take 10% salary reduction
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Lyft has laid off hundreds of its employees and furloughed even more as the coronavirus pandemic continues to hit the economy.
On Wednesday, the ride-hailing app filed a regulatory report with the Securities and Exchange Commission (SEC), saying it had laid off 982 employees.
LYFT ROLLS OUT CORONAVIRUS ESSENTIAL DELIVERY PROGRAM
Those employees made up about 17 percent of its workforce -- not including its contracted drivers, Ars Technica reported.
In the filing, Lyft also said it furloughed another 288 workers and reduced the salaries of the remaining employees.
Lyft has laid off 982 employees and furloughed another 288, the company said in a filing with the SEC on Wednesday. (iStock)
According to the report, executives will have a 30 percent salary reduction, vice presidents will have a 20 percent salary reduction and the rest of Lyft’s salaried employees will have a 10 percent salary reduction.
"It is now clear that the COVID-19 crisis is going to have broad-reaching implications for the economy, which impacts our business," Lyft CEO Logan Green said in a statement emailed to FOX Business.
"We have therefore made the difficult decision to reduce the size of our team," Green added. "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.”
UBER, LYFT, DOORDASH CONSIDERING CORONAVIRUS FUND FOR QUARANTINED DRIVERS
Though Lyft competitor Uber hasn’t made layoffs yet, The Information reported earlier this week Uber executives are discussing the possibility of laying off 20 percent of the company’s employees.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 16.71 | -0.60 | -3.47% |
| UBER | UBER TECHNOLOGIES INC. | 71.30 | -0.64 | -0.89% |
That could total more than 5,400 Uber employees, according to the report.
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Two weeks ago, Lyft launched an “essential deliveries” program in 11 cities, FOX Business previously reported.
The service brings groceries, medical supplies, home necessities, auto parts and other essential items to government agencies, nonprofits, health care organizations and other businesses.
The program works similarly to typical Lyft rides, except drivers will pick up and drop off a package weighing no more than 50 pounds.