Lyft to slow hiring, assess budget cuts

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FILE PHOTO: The Lyft Driver Hub is seen in Los Angeles

(Reuters) – Ride-hailing firm Lyft Inc said on Tuesday it would slowdown hiring and assess budget cuts in some departments, joining rival Uber Technologies Inc in attempting to rein in costs.

Lyft said no employee layoffs are planned and added it would grant special stock options to eligible employees.

“We’re also being responsible about costs and will significantly slow hiring,” the company said in a statement.

Shares of Lyft have tumbled nearly 61% this year amid broader declines in tech stocks and closed down 17.2% on Tuesday.

Earlier this month, Uber’s Chief Executive Officer Dara Khosrowshahi said the company would scale back hiring and reduce expenditure on its marketing and incentive activities.

(The story corrects syntax error in headline)

(Reporting by Eva Mathews in Bengaluru; Editing by Amy Caren Daniel)

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