By Catherine Thorbecke, CNN Business

Lyft on Thursday said it will lay off 13% of its staff, or nearly 700 employees, as it rethinks staffing amid rising inflation and fears of a looming recession.

In a memo to staffers on Thursday, a copy of which was shared with CNN Business, Lyft (LYFT) co-founders Logan Green and John Zimmer said the layoffs will impact every part of the company, and pointed to broader macroeconomic challenges that led to the cuts.

“We know today will be hard,” the founders wrote in the memo. “We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up.”

“We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives,” the memo said. “Still, Lyft has to become leaner, which requires us to part with incredible team members.”

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Driving a trend

The move comes after a number of tech companies reported slowing growth in the September quarter, as customers and advertisers rethink spending. However, Lyft’s chief rival, Uber, bucked the trend by reporting strong revenue growth, fueled by demand for rides and meal deliveries.

Lyft is set to report earnings results on Monday.

“We are not immune to the realities of inflation and a slowing economy,” the co-founders wrote in the memo to staffers.

In a company filing on Thursday, Lyft confirmed the plans involving the “termination of approximately 683 employees” and said it will incur approximately $27 million to $32 million of “restructuring and related charges” due to severance and benefits costs.

Shares for Lyft are down nearly 70% so far this year.

Editor’s Note: Lyft competitor Uber reported quarterly results recently, and beat Wall Street analyst’s estimates, driving revenue and profits greater than expected. Amazon announced on Thursday that it would pause hiring for corporate roles, citing macroeconomic uncertainty. And Twitter may lay off half of its workforce, now that Elon Musk has bought the company and become its sole director and ‘Chief Twit.’ 

Reports: Twitter could lay off half its workforce

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