Lyft Is Braced For More Tougher Stance As Slowdown Concerns Weigh

Anusuya Lahiri
·1 min read

  • Lyft, Inc (NASDAQ: LYFT) froze hiring in the U.S. through the end of the year.

  • Lyft, which cut 60 jobs in its rental division in July, combated surging expenses as U.S. inflation reached record highs, Reuters reports.

  • The number of Lyft's full-time employees increased from 2,708 as of December 31, 2017, to 5,000 as of June 30, 2022, a regulatory filing shows.

  • Lyft said its costs jumped 35.6% in its most recent quarter.

  • Several tech companies slashed headcount in recent months.

  • Lyft's larger rival Uber Technologies Inc (NYSE: UBER), also eased down hiring and cut marketing spending.

  • Lyft posted a record quarter in August on the back of soaring demand for rides and gains from its cost-cutting efforts.

  • However, Lyft warned that challenges would persist in the third quarter due to high insurance costs, macroeconomic uncertainty, and inflation.

  • Companies ranging from Microsoft Corp (NASDAQ: MSFT) to Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google emphasized cost-cutting and slowing down on hiring to beat the macro headwinds.

  • Contrastingly companies like Palantir Technologies Inc (NYSE: PLTR) and American Express Co (NYSE: AXP) ramped up hiring to meet their ambitious sales targets.

  • Price Action: LYFT shares traded lower by 3.60% at $13.65 in the premarket on the last check Wednesday.

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