More layoffs at tech companies are in the works. Elon Musk, who purchased Twitter for $44 billion last week, has ordered cuts across the social media company, which employs about 7,500 people. Workers at the social media company have started circulating a “Layoff Guide” with tips on how to handle being laid off.
On Thursday, Lyft said it had decided on layoffs in the face of “a probable recession sometime in the next year.” All teams would be affected, said Logan Green and John Zimmer, the company’s founders, in an email to employees.
“It was important to take these proactive actions to ensure we can accelerate execution, stay focused on the best opportunities to drive profitable growth, and deliver strong business results,” Mr. Green and Mr. Zimmer wrote.
Over the summer, Lyft cut 2 percent of its employees, mostly as a result of shutting down its car rental business, and implemented a hiring freeze. But the company still had “to become leaner,” its founders said. It was “not immune to the realities of inflation and a slowing economy,” which had led to increasing ride-share insurance costs.
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Lyft also said that it planned to sell its first-party vehicle service business and that it expected employees on that team to be offered jobs at the acquiring company.
Patrick Collison, a co-founder and the chief executive of Stripe, said the company hired too many people and spent too quickly on its operations during the pandemic, only to be confronted this year by inflation, high interest rates, climbing energy costs and declining start-up funding.
“We were much too optimistic about the internet economy’s near-term growth,” he said in an email to employees, adding that the company had “underestimated both the likelihood and impact of a broader slowdown.”