After announcing that the company had become a flexible fly workplace, existing employees of Lyft were ordered a Return-to-Office Policy by its new CEO David Risher. Starting this fall, employees will now be required to come back to the office at least three days a week.
SAN FRANCISCO, CALIFORNIA - AUGUST 12: A sign is posted in front of a Lyft driver center on August 12, 2020 in San Francisco, California. Lyft reported a 61 percent drop in second quarter revenues with earnings of $339.3 million compared to $867.3 million one year ago.
Implementing Return-to-Office Policy
Lyft has asked its employees to return to the office this coming fall. According to a report from The New York Times, this is one of the major changes of newly appointed Chief Executive Officer David Risher in his new management at the struggling company since starting this month.
In an interview, Risher argued that things move faster when employees work in the office, as remote work in the tech industry has come at a cost, eventually leading to isolation and eroding culture.
"There's a real feeling of satisfaction that comes from working together at a whiteboard on a problem," the CEO added.
Starting May 1, Risher will now require its employees to come on Mondays, Wednesdays, and Thursdays and be recommended to come on Tuesdays. He added that he sees this moment as an opportunity for a "cultural reset" in the company's operations with his new management.
Also read: Lyft Lays Off 26% of its Workforce in a New Restructuring Plan
This comes after when Lyft announced it was "now a fully flexible workplace" just a year ago. Reuters reported that Lyft also decided to sublease parts of its office spaces in San Francisco, New York, Nashville, and Seattle after more employees opted to work from home last year.
President of Business Affairs Kristin Sverchek stated that employees can choose whether to live and work as they can work at the office, from home, or hybrid set-up.
Other Major Changes
Aside from this policy, CEO Risher also implemented a new restructuring plan under his new management, implementing layoffs to 26% of its workforce. This will affect a total of 1,072 employees. Lyft argues that this decision will help the company to improve its operations for its drivers and passengers.
This round of layoffs will cost the company $41 million up to $47 million in severance and benefits expenses in the year's second quarter. Risher clarified that its drivers would not be affected as they are considered independent contractors.
In a previous report last March, Lyft also considered removing its shared rides offering to shift its focus on the company's operations, including the Wait & See feature that allows users to pay a lower fare when they wait for their driver for a long time. Risher believes removing this feature is the perfect timing, launching it in 2014 as a response to its competitor's Uber Pool.
Related Article: Lyft Plans to Drop Shared Rides Offering to Focus on Operations Under New CEO
