Lyft will now stop renting out cars from their fleet while laying off nearly 60 employees. These layoffs have also been confirmed by LinkedIn posts of the affected workers. The people who lost their jobs worked in operations and covered 2% of the company’s workforce. Back in May, the company reportedly wrote in a memo that they were slowing down hiring due to the economic downturn, but that did not have any layoffs planned. But things have changed or the worst since then as many other companies not just left are now firing and laying off many of their employees out there because they say they are getting prepared for an upcoming economic downturn.

In an internal memo from VP Call Langton, the executive said that the companies wrote to in House rentals as long and challenging with significant uncertainty, also explaining that the company started discussing the possibility of getting out of the business last fall and that talks were ramping up as the economy made the business case unworkable.

Lyft previously debuted its rental business in LA and San Francisco Bay area back in 2019, but after a few months of existing, It eventually expanded its first-party car rental offering to five locations. The companies are also reorganizing their operations and consolidating their offers from 13 to 9 regions globally, which will be leading to the closure of a location in Northern California, and their Detroit hub.

All that being said, it is certainly not the first or the only company that is cutting jobs due to the economy in the tech industry, as Tesla also reportedly laid off 500 employees after Netflix cut 300 jobs, and more recently Tiktok started laying off people around the world Meta is also another company telling their managers to keep an eye out for low performing workers that can be laid off.