People familiar with the matter said that LYFT, the second largest online car Hailing app in the United States, will slow down recruitment, cut budgets of some departments, and issue new stock options to some employees to make up for the decline in share prices. As investors' optimism about technology stocks cooled, LYFT joined rival Uber and began to cut spending.
LYFT President John Zimmer is expected to announce the measures in a memo to employees on Tuesday, people familiar with the matter said. The spokesman confirmed the plan. "We are focused on accelerating earnings growth. We are also responsible for costs and will significantly slow recruitment." LYFT spokesman Jodi Seth said in a statement.
LYFT's Board met on Friday to discuss spending cuts, people familiar with the matter said. LYFT has recently begun sending signals to some employees that it will slow recruitment and cut budgets.