Lyft is cutting 13% of staff to cope with ‘tough reality’

Lyft Inc. said it will cut 13% of staff as the ride-hailing company tries to cope with a difficult economic backdrop, according to a memo to employees viewed by Bloomberg.

The cuts will amount to about 683 employees, the company said in a filing. The San Francisco-based company will also divest its first-party vehicle service business, and expects workers in that division will be offered positions by the buyer. Lyft is preparing to report third-quarter results on Monday. It has already said it would freeze hiring in the U.S. at least until next year to rein in costs and maintain profit during a period of macroeconomic instability. It’s now confronting a squeeze on consumer spending from high inflation and a rockier global outlook that’s pummeled tech stocks.