Lyft curbs chunk of staff due to heightened insurance costs - San Francisco Business Times

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Another huge San Francisco company is cutting 700 jobs. And it's not Twitter or Stripe.

San Francisco ride-hailing giant Lyft Inc. is reportedly planning to lighten its headcount by about 700 jobs, or 13%, as it braces for bumpy economic conditions on the horizon in terms of insurance costs.

Co-founders John Zimmer and Logan Green announced the cuts to staff Thursday, according to a memo obtained by“There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up,” they wrote in the memo. Lyft laid off 60 people, or roughly 2% of its more than 4,000-person workforce, in July. Neither of the cutbacks affect drivers.

Shares of Lyft , which have fallen a staggering 68% this year, have nudged back up more than 8% over the past 30 days. The company will post third-quarter results on Monday.owner Elon Musk reportedly plans for make a 50% headcount reduction there by Friday, amounting to about 3,500 layoffs. Also in the city, proptech Opendoor Technologies Inc. is laying off about 18% of its workforce, shedding more than 550 employees, while fintech Chime is cutting 12%, or about 150 employees., based in South San Francisco, also said this week it will cut more than 1,000 jobs — a 14% reduction — returning headcount to the almost 7,000 total from February, according to co-founders Patrick and John Collison, who noted that Stripe's recruiting business would be the most impacted.

 

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