(Reuters) – Lyft will freeze all hiring in the United States through the end of the year, a Lyft spokesman said on Tuesday, making the taxi-leasing company the latest company to halt hiring as rising inflation forces cost-cutting measures.
The company, which in July cut nearly 60 jobs in its rental division, is struggling with rising expenses as US inflation hits levels not seen in four decades. As of June 30, Lift (NASDAQ 🙂 It had nearly 5,000 employees, according to its most recent quarterly filing with the Securities and Exchange Commission.
San Francisco, California-based Lyft said its costs jumped 36% in its most recent quarter.
Several tech companies have had to cut staff in recent months, with Lyft rival Uber Technologies (NYSE:) cutting hiring and slashing marketing spending.
Lyft posted a record quarter in August on the back of increased ride demand and gains from its cost-cutting efforts.
However, the company warned of continued challenges in the third quarter due to rising insurance costs, macroeconomic uncertainty and inflation.
A massive sell-off in the markets due to severe inflation and fears of a looming recession have crushed risky assets this year. As of Tuesday’s close, Lyft’s stock is down more than 68% in 2022.
The hiring freeze plans were first reported by the New York Post.