Ride-hailing service Lyft is cutting 13% of its employees, the company announced Thursday.
"Lyft has to become leaner, which requires us to part with incredible team members," co-founders Logan Green and John Zimmer wrote in a blog post. "The layoffs impact every organization in the company."
Those employees who lost their jobs will receive 10 weeks of pay, health insurance coverage until April 30, 2023, and recruiting assistance. Employees who have been with Lyft for more than four years will also receive an additional four weeks of pay on top of the 10 weeks.
The company said several economic challenges, like a looming recession in the next year and rising rideshare insurance costs, factored into this decision.
Lyft also said this isn't the first time this year it has taken steps to cut costs.
"We worked hard to bring down costs this summer," the co-founders wrote. "We slowed, then froze hiring; cut spending; and paused less-critical initiatives."
The company also announced that it's looking to sell its first-party vehicle service business.
"We need 2023 to be a period where we can better execute without having to change plans in response to external events," the co-founders wrote. "The tough reality is that today's actions set us up to do that."
Lyft's shares have fallen by over 60% year to date, and its market cap is just under $5 billion as of Thursday.
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