Huge layoffs continue in tech sector: Here is the next name
Layoffs have been taking place in technology sector for a while and now more of them are being added.
For a while now, huge layoffs have been taking place in tech market, and now another name has joined the game. After Twitter, Microsoft and Google laid off their employees in huge numbers right now Lyft is also doing huge layoffs.
Lyft has started to layoff employees
Last week, Lyft issued a warning about upcoming layoffs and is now taking action. The ridesharing organization is eliminating 1,072 positions, or around 26% of its representatives. Additionally, it is reducing hiring and will eliminate 250 open positions. In the second quarter, the decision will result in severance and benefits costs of up to $47 million, but Lyft anticipates that the savings will contribute to "improvements" for drivers and passengers. On the earnings call on May 4, additional information will be provided.
In November of last year, the company had already laid off 13 percent of its workforce. Additionally, this most recent decision comes just a few weeks after co-founder Logan Green resigned as CEO following a difficult earnings call. Green stated that in order for the business to remain competitive with Uber, it would need to increase spending. Despite the fact that neither Lyft nor Uber has made a profit annually, Uber made money last quarter as a result of investments in other businesses.
