Shares of ride hailing company Lyft (LYFT) fell 17% to a new 52-week low after the company
announced plans to slow hiring and cut costs across its operations.
Lyft’s management team said it needs to contain costs and preserve cash as it grapples with the
turbulence hitting technology stocks.
President John Zimmer told employees in a memo that the company isn’t planning to layoff
staff, but it will reign in hiring this year.
Additionally, Lyft told staff that it plans to give eligible team members new stock options to
account for declines in the company’s share price.
“We’re focused on accelerating profitable growth... We’re also being responsible about costs
and will significantly slow hiring,” Lyft said in a news release.
Lyft’s share price has fallen 63% this year to $16.72 U.S. The decline in the company’s stock
accelerated when the San Francisco-based company said it would ramp up spending on driver
incentives to cope with persistent labour shortages.
