Lyft Inc. is the latest tech company to cut employees, saying Thursday that it will lay off about 13% of its staff.
Earlier, Stripe, one of the world’s most highly-valued startups, said it was laying off about 14% of its employees and blamed the harsh economic climate.
“There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year."
And ride-share insurance costs are going up,” they wrote in the memo viewed by the Journal.
“We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives."
Still, Lyft has to become leaner, which requires us to part with incredible team members,” they added.
The ride-hailing company has more than 4,000 employees, which don’t include its drivers.