Live News Updates: Starbucks beats sales forecast despite sharp declines in China

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Ride-hailing company Lyft was the latest tech company to lay off staff, while Amazon said it would pause hiring at its corporate business as tech companies slim down to cope with the economic slowdown.

Lyft, a rival of Uber, announced Thursday it would cut 683 jobs — 13 percent of its 4,000 employees — to cut costs.

“We worked hard this summer to reduce costs: we slowed down hiring and then stopped; cut spending; and paused less critical initiatives. Still, Lyft needs to slim down, which requires us to let go of incredible team members,” Lyft co-founders Logan Green and John Zimmer said in a memo to employees.

In a filing with the Securities and Exchange Commission, the ride-hailing company said the layoffs would cost it between $27 million and $32 million in restructuring fees and severance payments.

The layoffs at Lyft, first reported by the Wall Street Journal, are the second round of cuts for the ride-hailing company in recent months. The company announced it would sell its automotive service business.

The news came after payments giant Stripe announced it was shedding about 14 percent of its workforce to prepare for “study periods.”

Separately, Beth Galetti, an Amazon recruiting director, told employees the company will pause “additional hires to our corporate workforce” to “align our hiring and investments with thinking about this economy.”

The job losses and hiring hiatus are a sign of how darkening economic conditions are forcing tech companies to cut costs and build buffers to cope with a slowdown in consumer spending.

Read more about the technical slowdown here.

https://www.ft.com/content/666fc67d-8502-4d1e-9eee-64d7b194dd42 Live News Updates: Starbucks beats sales forecast despite sharp declines in China

Adam Bradshaw

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