Another unexpected victim of the global pandemic appears to be Lyft. On Wednesday, April 29, the transportation company announced it would lay off nearly 1,000 employees and end scooter operations in Austin and San Jose, California.
In an SEC filing filed by Lyft CFO Brian Roberts, the company said it laid off 982 employees, about 17 percent of its workforce, and blamed the impact of COVID-19 on the company. The news was first reported by CNBC.
In addition, the company has introduced a policy for a period of 12 weeks from May 2020 that will reduce the base salary for executives by 30 percent, for vice presidents by 20 percent and for all other employees by 10 percent. Members of the company’s board of directors will forego 30 percent of their cash compensation for the quarter.
While Lyft is headquartered in San Francisco, it’s not surprising that it has a strong presence in the capital, including a regional driver center near Windsor Park in northeast Austin. Unable to answer CultureMap’s question about the number of these layoffs in Austin, Lyft said, “We’re not dividing any further by region, but all teams and regions were affected.”
In another cost-cutting move, Lyft is removing all scooters from the streets in Austin starting April 29. This takes place after six weeks of start and stop for the start of the Transpo. After Austin issued his safe home / work order in mid-March, Lyft removed his scooters for return in early April and helped mobilize critical health workers. Less than a month later, that program ended, but a Lyft spokesperson says he will be giving those participating in the program a $ 200 ride sharing allowance.
“We are grateful to our Austin scooter riders as well as our partners in the Austin city government,” a Lyft spokesman said via email. We will continue to support the essential travel needs of the drivers during this time with other reliable means of transport. “
However, the Lyft Ride hail service remains operational.