US ride-hailing giant Lyft Inc. is expected to cut the number of its employees by as much as 13%, according to an email sent by senior management cited by CNBC on Thursday, with about 683 jobs affected by the decision.
Lyft's President John Zimmer and Chief Executive Logan Green cited the upcoming recession in the United States and subsequent insurance costs as the reason behind the decision. The company's shares plunged over 2% following the news, confirming Lyft's market value at below $5 billion. Lyft's stocks tumbled nearly 70% since the start of the year.
The latest decline was pushed by the Biden administration's initiative last month that ride-hailing drivers should be recognized as full-time workers rather than contractors. Similar changes have already been introduced in the United Kingdom and the Netherlands earlier this year.
Lyft is scheduled to announce its third-quarter financial results after the closing bell on November 7.
