More than 1,000 people are out of work due to cutbacks at Lyft. The company is laying off 982 employees, 17 percent of its workforce, CNBC reports. It is furloughing another 288 workers.
In a regulatory filing, the company detailed plans to reduce the base salary for remaining employees for a 12-week period. Executives will take a 30 percent pay cut. Vice presidents will see a 20 percent cut, and Lyft will reduce pay by 10 percent for all other exempt employees. The board of directors has also agreed to forego 30 percent of their cash compensation for the second quarter of 2020.
Layoffs are becoming increasingly common due to COVID-19, and ridesharing has been particularly hard-hit. With more people staying home, services have seen demand drop precipitously. Just yesterday, The Information reported rumors that Uber is discussing plans to layoff about 20 percent of its workforce.