All teams will be impacted by the 13% of its workforce that is being cut.
According to an email obtained by CNBC, the CEO and the president pointed to rising insurance costs and a possible recession as reasons for the email to be sent to employees. The guidance it gave last quarter hasn't changed.
The shares of the company were down. Its market cap has fallen under $5 billion due to the fall of its shares.
According to the company, it has over 5000 employees.
The email stated that the layoffs were based on deprioritized initiatives, an effort to reduce management layers, and a performance trajectory.
Ten weeks of pay, healthcare coverage through the end of April, and recruiting assistance will be given to laid off workers. Four weeks of pay will be given to workers who have been there for more than four years.
Tech companies have recently announced cuts or freezes. The layoffs have been announced by several companies. They have taken measures to bring their expenses in line.
Inflation and a slowing economy are realities that we are not immune to. The tough reality is that today's actions set us up to do that, so we need a period in which we can better execute without having to change plans.
The full email from Green and Zimmer can be found here.
The team.
Everyone is invited to join us for an all-hands meeting at 11:00 am to share some bad news. We had to make the difficult decision to lay off 13% of the team. Most of the team members will be offered roles from the acquiring company if we sell our first party vehicle service business.
Today will be difficult. We want to share how we made this decision, how we're supporting departing team members, and what to expect over the next few days.
What's going on?
The economy is facing several challenges. rideshare insurance costs are going up as we face a probable recession. We slowed hiring, cut spending, and paused less critical initiatives in order to bring down costs. We need to become leaner so that we can part with amazing team members.
Every organization in the company was affected by the layoffs, which were based on deprioritized initiatives, an effort to reduce management layers, and a performance trajectory.
The business is moving in a positive direction. It was important to take proactive actions to make sure we can accelerate execution, stay focused on the best opportunities to drive profitable growth, and deliver strong business results in the future.
Outgoing team members receive support.
The real impact this decision has on departing team members is understood by us. Support will be offered to departing team members.
Ten weeks of pay.
Access to Modern Health is included in healthcare coverage.
The accelerated equity will be vested on November 20.
Coaching sessions on resume and interviews are included.
Four weeks of pay will be given to team members who have been with the company for at least 4 years.
It's moving forward.
We want to take care of departing team members who are also friends. Thank you to the team members for everything they have done for the community, mission, and business
We are not immune to the effects of inflation. The tough reality is that we have to change our plans in response to external events in order to be able to execute better. We have a responsibility to protect the future of the drivers and riders we serve.
The guys are John andLogan.
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There was a selloff of gig economy stocks.
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