Lyft (NASDAQ:LYFT) layoffs are on the way as the ride-sharing company’s new CEO looks to cut a large number of employees from the payroll.

David Risher recently took over as CEO of Lyft. Risher recently sent a letter to employees warning about the layoffs. According to the letter, a “significant” number of workers will be affected by the cuts

While Risher didn’t say how many employees will be affected by the Lyft layoffs, recent reports claim it’ll be about 1,200 workers. To put that number in perspective, Lyft currently employs over 4,000 people.

In the letter, the CEO says that Lyft is seeking to lay off employees as part of an effort to reduce costs. He claims this is the best way for the company to “deliver affordable rides, compelling earnings for drivers, and profitable growth.”

One thing investors will note about the layoffs is how they affect the company’s ride-sharing workers. These workers are considered independent contractors, which means the layoffs won’t affect them directly.

Lyft Joins Layoffs Trend

Lyft is nowhere close to the only company announcing layoffs recently. Several companies have been cutting employees to deal with the current economy. Rising inflation is of chief concern. Increasing interest rates and reduced spending are also problems for many companies.

LYFT stock is down slightly on Monday morning following the layoffs announcement.

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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.