Read part of the memo Lyft's cofounders sent to employees as the company begins laying off nearly 700 staffers
Lyft will announce its third quarter resultsaccording to a company filing. The company confirmed that there are"no changes in the previously issued guidance regarding third quarter 2022 revenues, contribution margin and Adjusted EBITDA, or our 2024 financial targets for $1 billion in Adjusted EBITDA with more than $700 million in Free Cash Flow," per the Lyft memo.Lyft did not immediately respond to Insider's request for comment, which was sent outside business hours.
We know today will be hard. To help provide initial context, we want to share how we made this decision, how we're supporting departing team members, and what to expect over the coming days.There are several challenges playing out across the economy. We're facing a probable recession sometime in the next year and rideshare insurance costs are going up. We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives.
The layoffs impact every organization in the company, and were based on deprioritized initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory. We are confident in the overall trajectory of the business. It was important to take these proactive actions to ensure we can accelerate execution, stay focused on the best opportunities to drive profitable growth, and deliver strong business results in 2023 and beyond. We understand the real impact this decision has on departing team members. Lyft will offer support to departing team members:Accelerated equity vesting for the November 20 vesting date.
We are not immune to the realities of inflation and a slowing economy. We need 2023 to be a period where we can better execute without having to change plans in response to external events — and the tough reality is that today's actions set us up to do that. It's our responsibility to take ownership of these decisions and, in the end, protect the future we're building for the drivers and riders we serve.
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