Lyft Plans to Cut Back on Hiring After Dropping Over 60% in 2022

Urian B., Tech Times 25 May 2022, 02:05 am

Although Lyft had plans to increase the number of its total employees, the company has decided to cut down and slow its hiring process. The move to slow down its hiring comes at a time when its shares dropped by over 60% this year alone.

Lyft Plans to Slow Hiring and Cut Costs

According to the story by Bloomberg, Lyft is not only planning to slow its hiring but also to cut costs in certain parts of the company. The move to take a step back and not spend extra money comes at a time when the tech stocks are experiencing turbulence in the market.

The ride-hailing giant is no exception to what is happening to the market as tech stocks are taking a huge hit. The company, however, gave a good announcement to its employees regarding the status of their jobs.

The Company Announced That It Will Not Lay Off Its Staff

The president of Lyft, John Zimmer, told their employees that they are safe and that the company is not planning to lay off its staff. The news was relayed by Jodi Seth, a company spokesperson, regarding the company's decision not to let go of its workers.

Despite the company's decision to slow down hiring, according to an article by Yahoo Finance, Lyft is still planning to give certain "eligible team members" new stock options. This is in order to account for the company's share price decline.

Lyft Plans to Focus More on Accelerating Profitable Growth

Seth gave an official statement regarding what the company is going through. In the statement, the spokesperson detailed that Lyft will be focused on "accelerating profitable growth."

Aside from looking at just growth acceleration, the company is also planning to be responsible when it comes to costs and will slow its hiring significantly. The company's decline, which has fallen over 60% this year alone, was reportedly accelerated by a significant announcement.

Lyft has Fallen from Its IPO Price of $72 Per Share to Just $16.90

The decline accelerated when Lyft decided to indicate that they would be increasing their spending on driver incentives. This move was supposed to help the company deal with the persistent labor shortage by attracting new drivers to use the app.

As seen on Market Watch, Lyft has fallen from its IPO price of $72 per share, as noted by CNBC, down to just $16.90 as of press time. Although the company was still able to reach a high of $66.56 in 2021, the company declined once again.

Lyft, however, still remains a big company with a market cap of $7.03 billion. Aside from the company's plan to slow its hiring, little is known regarding what other moves the company will be making in order to reduce costs and potentially increase profits.

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Written by Urian B.