Lyft (LYFT) revealed plans on Thursday to lay off 26% of its staff as the company becomes the latest in the tech space to deepen workforce cuts amid a challenging economic environment.
The announcement will affect 1,072 employees at the rideshare company, which will also scale back plans to fill 250 open positions.
This news comes early in new CEO David Risher's tenure, which began this month. This layoff move will cost Lyft between $41 million and $47 million in severance pay and benefits.
Layoffs have been a key feature of tech over the last year, as some of the sector's biggest names like Meta (META) and Amazon (AMZN). Meta particularly has been rewarded in the markets for its massive cost-cutting efforts – the company's shares are up 15% today after Meta's key revenue beats, bolstered by a major headcount reduction.
Previously, Lyft laid off 13% of its staff back in November.
Lyft's stock is down about 9% year-to-date, whereas competitor Uber (UBER) has seen its shares climb about 17% year-to-date.
Lyft is expected to report its Q1 2023 earnings on May 4.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
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