MBA IN SIMPLE WORDS
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According to a WSJ article, Lyft, a ride-sharing business, intends to reduce expenses by cutting at least 1,200 positions in a new round of layoffs.
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The latest cuts could impact over 30% of the company's 4,000+ employees.
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The COVID-19 pandemic has hit Lyft hard, resulting in a sharp decline in demand for ride-hailing services.
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Lyft has already implemented cost-cutting measures to mitigate the pandemic's impact.
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To compensate for the decline in ride-hailing demand, Lyft has been exploring new revenue streams such as delivery services.
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The pandemic has caused a shift in consumer behavior, with more people preferring private cars or other modes of transportation instead of ride-hailing services.
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Like Lyft, Uber, its main competitor, has also been hit hard by the pandemic and has implemented similar cost-cutting measures.
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Despite the current crisis, Lyft's management is confident in the company's ability to weather the storm and emerge stronger in the long run.
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The layoffs are expected to help Lyft reduce its costs by half and become more competitive in the North American ride-sharing market.
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