Lyft has announced a US hiring freeze for at least the next year, blaming economic uncertainty that’s hit the ride-hailing giant’s stock price.

The San Francisco-based corporation has been battling rising costs as US inflation hits a historical 40-year high. 

A company spokeswoman said: “Like many other companies navigating an uncertain economy, we are pausing hiring for all US-based roles through the end of the year.”

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The move is an extension of the transport firm’s decision to slow hiring in May. 

It has been prioritizing cost savings and profitability in the midst of a deteriorating economic outlook. 

Its stock has dropped 67 percent this year, compared to a 23 percent decline in the S&P 500 Index.

In July, the company confirmed plans to close its car-rental division and lay off around 60 employees.

By the end of 2021, the company had around 4,500 workers.

The spokeswoman added that there are presently no plans for more layoffs, but that this might change if economic conditions worsen.

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Lyft said its costs climbed 36 percent in its most recent quarter.

Several tech companies have been compelled to reduce their workforce in recent months.

Uber Technologies, the ridesharing service’s larger rival, has likewise reduced recruiting and marketing investment.

Lyft reported a record quarter in August, thanks to increased trip demand and cost-cutting measures.

However, because of rising insurance prices, macroeconomic uncertainties, and inflation, the firm cautioned that challenges will remain in the third quarter.

Source: Bloomberg

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