Lyft is laying off 17% of its workforce amid plummeting demand for rides. It's also cutting pay and furloughing hundreds more workers.
Neither company has given a full picture of how badly their revenue has been hit by falling demand. In mid-March, Uber CEO Dara Khosrowshahi said bookings, which is the total amount the company collects in fares, were down at least 60% in Seattle, one of the first U.S. cities to be hit hard by the virus. He said he was expecting a similar trend in other big cities such as New York, Los Angeles and San Francisco.
Both Lyft and Uber report next week on their financial results for the first three months of the year. In addition to the job cuts, Lyft has furloughed another 288 employees. It will cut salaries by at least 10% for all employees for three months starting in May. Executives and vice presidents will take higher cuts of 30% and 20%, respectively.
Lyft said the layoffs would cost about $28 million to $36 million, mainly in severance and benefits costs, in the quarter.this week that Uber, similarly, is considering cutting around 20% of it workforce, or about 5,400 employees. A spokesman for Uber declined to comment on that report."As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever," he said.
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