Updated Apr 30, 2020 - Economy & Business

Layoffs hit scooter rental company Lime

Illustration: Sarah Grillo/Axios

E-scooter company Lime is preparing to lay off between 80 and 100 employees, Axios has learned from a source close to the situation.

The big picture: While Lime made some job cuts in January to chase profitability, pandemic-related lockdown orders have changed the company's math.

The big picture: Lime isn't the only e-scooter company doing layoffs. Bird eliminated 400 positions last month, while Lyft today disclosed plans to lay off 17% of its workforce.

  • Bloomberg earlier reported that Lime plans to lay off 190 people, but our understanding is that the number is significantly lower.
  • A Lime spokesperson declined to comment.

Update: On Thursday morning, Lime announced internally it's laying off 83 employees, or 13% of the company.

  • The cuts are across all teams and geographic areas.
  • Severance packages include between four and eight weeks of pay, plus three months of health care coverage for U.S. employees, a source tells Axios.
  • Read Lime's blog post, including CEO Brad Bao's email to staff.

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House Democrats pull FISA reauthorization bill

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House Democrats pulled legislation Thursday that would have renewed expired domestic surveillance laws and strengthened transparency and privacy protections amid broad opposition from President Trump, House GOP leadership and progressive Democrats.

Why it matters: The failure to reauthorize the Foreign Intelligence Surveillance Act (FISA) comes as Trump continues to attack the intelligence community, which he claims abused the law to surveil his 2016 campaign and Trump administration officials.

U.S. GDP drop revised lower to 5% in the first quarter

Data: Bureau of Economic Analysis; Chart: Axios Visuals

The U.S. economy shrunk by an annualized 5% in the first quarter — worse than the initially estimated 4.8% contraction — according to revised figures released by the government on Thursday.

Why it matters: It's the worst quarterly decline since 2008 and shows a huge hit as the economy was just beginning to shut down because of the coronavirus. Economists are bracing for the second quarter's figures to be the worst ever — with some projecting an annualized decline of around 40%.

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