The move is an attempt to cut operating costs and overcome the economic downturn caused by the COVID-19 pandemic, CNBC reports. [Read: Uber’s longest-serving exec quits, while coronavirus threatens 5,000 jobs] According to the report, the staff reductions represent a 17% cut to the company’s workforce. Those that have held on to their jobs will be subject to a 12-week salary cut starting in May. The company’s executive leadership team will all take a 30% pay cut, vice presidents will take a 20% reduction, and all other employees will see their salaries temporarily reduced by 10%, Lyft said. Credit: Quotecatalog.com Lyft’s decision to lay off staff to address the economic challenges associated with the drop in rider numbers caused by coronavirus lockdowns is not unique. Ride-sharing firm and competitor Uber announced a similar SEC filing earlier this week. Following the resignation of the company’s CTO and longest serving executive, Uber said that it was discussing cutting 20% of its staff, putting more than 5,000 jobs. The coronavirus pandemic and associated lockdown measures have caused a drop in user numbers for apps like Uber and Lyft. With that in mind, layoffs and pay cuts shouldn’t come as a surprise. Research conducted by US automotive industry analysts, CarGurus, found that 39% of people are likely to stop or reduce their use of apps like Uber and Lyft when lockdown measures are lifted. While times might be challenging for ride-sharing firms right now, that’s unlikely to change any time soon.
