Lyft lays off 17 percent of its workforce, institutes pay cuts for remaining employees
Ride-sharing companies are struggling latelyBy Cohen Coberly
In context: Ride-sharing companies have taken quite a big hit to revenue in recent months. Some, like Uber, have been able to weather the storm somewhat by offering services like food and grocery delivery. Others, like Lyft, haven't been quite as adaptable, and are now suffering the consequences.
According to a new CNBC report, Lyft is laying off 17 percent of its workforce due to the Covid-19-pandemic, which amounts to 982 employees. An additional 288 employees will be furloughed, and those that will remain at work will see sizable salary cuts for 12 weeks.
Ordinary employees will take a 10 percent hit to their base paycheck, while vice presidents will see a higher 20 percent pay reduction. Top-level Lyft executives will receive 30 percent pay cuts, and the company's board of directors will "forgo" 30 percent of their "cash compensation" for Q2 2020.
Although these lay-offs are saddening, it is somewhat encouraging to see Lyft's leadership elect to absorb part of the blow in these trying times. Naturally, it would have been preferable for employees to not receive any pay cuts, but given how serious the Covid-19 situation is, it's clear that Lyft feels it was a necessary decision. Lyft expects to pay between $28 and $36 million in charges and fees related to this ongoing "restructuring."
We hope, for the sake of Lyft's remaining employees and individuals throughout the world, that the Covid-19 pandemic stabilizes soon.