Lyft (NASDAQ:LYFT) stock is on the move Friday after the ride-sharing company revealed plans to cut more jobs.
Specifically, Lyft is cutting 13% of its workforce. This is the second time the company has reduced its headcount since July. The latest job cuts will see the company terminate about 683 employees, a result of Lyft seeking to reduce operating costs.
Lyft expects to suffer a charge of between $27 million and $32 million for the layoffs. It also says it will incur this cost during the fourth quarter of 2022. However, the company isn’t updating its Q4 guidance and still expects strong results.
LYFT Stock: What’s Behind the Job Cuts?
Lyft CEO Logan Green and President John Zimmer sent an email to employees about the layoffs. Per CNBC, a portion of it reads as follows:
“We are not immune to the realities of inflation and a slowing economy. We need 2023 to be a period where we can better execute without having to change plans in response to external events — and the tough reality is that today’s actions set us up to do that.”
The latest Lyft news comes as several tech companies have taken to laying off employees or freezing hiring. This comes as economic pressure continues to push these companies toward cost-saving methods.
LYFT stock is down slightly as of Friday morning.
There’s more stock market news traders will want to know about below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.