Lyft shares tumbled in pre-market trading on Wednesday following The Post’s report that it had implemented a hiring freeze — and Uber wasn’t spared from the pain.
Shares of Lyft were down 3.2% while Uber had fallen 1.2% about an hour before the market was set to open on Wednesday morning. They inched higher closer to the bell.
The stock slumps got here after The Post exclusively reported late Tuesday that Lyft was freezing all hiring until the top of 2022.
“Like many other corporations navigating an uncertain economy, we’re pausing hiring for all US-based roles through the top of the 12 months,” Lyft spokesperson Ashley Adams said.
Uber said in May that it was slowing hiring and tightening its belt to weather an economic downturn, but has not announced a full hiring freeze. Nonetheless, Wall Street often evaluates Uber alongside Lyft for the reason that corporations have similar businesses.
In May, each Uber and Lyft announced plans to slow — but not freeze — hiring. Lyft also laid off several dozen employees in its automotive rental division in July.
Moves by the businesses to trim corporate headcount don’t affect drivers because the businesses classify them as contractors somewhat than employees.