For weeks upon weeks, economists have repeatedly put out forecasts that indicate a recession is on the way. Like the White House has done with many other economic warnings that turned out to be accurate, they’re largely dismissing these reports.
However, as the economy gets worse, Americans are the ones suffering. Inflation still stands at 9.1% and continues to hamper people’s incomes and finances. There’s no getting around that.
Various businesses are also taking steps of their own amid these turbulent times. As it turns out, certain companies have begun cutting their own losses by laying off workers.
Unfortunately, workers losing their jobs are in a unique bind. They have no income to fall back on, despite growing living costs.
Meanwhile, esteemed rideshare company Lyft is one of the companies giving workers the boot, as documented by The Hill.
What to Know About Lyft Laying Off Employees
Roughly 60 employees were laid off by the company. These layoffs particularly impacted those working within Lyft’s department of rental businesses.
As it turns out, the rideshare service is scrapping this department due to economic problems and various ambiguities regarding car fleet rentals.
getting a lyft for the AC is perfectly acceptable btw
— Lyft (@lyft) July 18, 2022
Instead of letting customers directly rent from them, Lyft will turn to team up with companies that specifically specialize in car rentals, such as Hertz and Sixt.
Lyft, overall, has an optimistic outlook for its future, despite the current condition of the economy. In a memo, the rideshare company expressed its view that revenue will ultimately remain on the rise during the second half of this year.
Mass Layoffs Coming Soon?
Lyft is not the first company to lay off its employees and it certainly won’t be the last. With inflation being such a serious problem, it’s begun cutting into the company’s profits as well.
This means everything costs more, from acquiring inventory to transportation, rent, etc. At this rate, there are few companies unscathed by growing expenditures, even if they manage to find various ways of offsetting the costs.
Americans who lose their jobs will find themselves in very dire positions. Data shows that fewer people today have healthy savings accounts to fall back on in an emergency.
We are in a recession there will be countless companies pausing hiring and doing layoffs.
Be aware of this and put yourself in the best position ASAP
— Beez (@BeezSLS) July 20, 2022
Meanwhile, even things like loans or credit card use will become more expensive, owing to the Federal Reserve’s continuous choice to move up the interest rate.
Thus far, interest rate increases have been marketed as a way of getting inflation to fall; however, this drop in inflation has yet to be seen.
What do you think about Lyft’s decision to lay off its workers? Do you believe the United States is going to see more workers losing their jobs? Let us know in the comments area below if you think a recession is already here.