Mon, 11 Dec 2023

Ride-hailing firm Lyft halts U.S. hiring amid recession fears

Robert Besser
03 Oct 2022, 12:11 GMT+10

SAN FRANCISCO, California: Ride-hailing firm Lyft said it is freezing all U.S. hiring through the end of the year, in a bid to combat rising costs.

Amid high inflation forcing cost-cutting, the San Francisco, California-based company is the latest business to pause general recruitment.

After battling surging expenses caused by the four-decade high U.S. inflation, in July the company cut nearly 60 jobs in its rental division.

According to its latest quarterly filing with the Securities and Exchange Commission, Lyft had nearly 5,000 employees as of 30th June, and said its costs jumped 36 percent in its most recent quarter.

In the past months, several tech companies have been forced to lay off staff, including Lyft's larger rival, Uber.

Amid soaring demand for rides and gains from its cost-cutting, Lyft posted a record quarter in August, but it warned that challenges would continue in the third quarter due to high insurance costs, economic uncertainty and inflation.

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