The coronavirus outbreak has absolutely taken a financial toll of several businesses worldwide—and popular ride-sharing app Lyft is the latest to feel the lingering impact.
Lyft just announced plans to cut almost 20% of its staff, while hundreds more will be furloughed. Lyft plans to cut nearly 1,000 employees (which totals about 17% of its staff) and furlough almost 300 employees on top of that. Lyft, says that revenue is down considerably and many are not using the ride-share service due to the ongoing coronavirus pandemic.
In a recent filing earlier this week, Lyft explained that the company downsizing was implemented as a way to curb operating expenses and adjusting company cash flow “in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the company’s business.”
Lyft’s news comes just after widespread reports that ride-share rival Uber is also in the middle of weighing the idea of making significant cuts to its staff as well. Historically, both companies have a noted history of steep losses and company layoffs even before the coronavirus outbreak began a few months ago.
Perhaps in an effort to make up for its financial losses, Lyft has reportedly been attempting to shift toward delivery, an area it had not previously embraced. The company also advised its drivers to make extra money by driving for Amazon.