Lyft Inc. said November 3 it will cut 13% of staff as the ride-hailing company tries to cope with a difficult economic backdrop, according to a memo to employees viewed by Bloomberg.

The cuts will amount to about 683 employees, the company said in a filing. The San Francisco-based company will also divest its first-party vehicle service business, and expects workers in that division will be offered positions by the buyer.

Lyft is preparing to report third-quarter results on November 7. It has already said it would freeze hiring in the U.S. at least until next year to rein in costs and maintain profit during a period of macroeconomic instability. It’s now confronting a squeeze on consumer spending from high inflation and a rockier global outlook that’s pummeled tech stocks.

“We are not immune to the realities of inflation and a slowing economy,” Lyft Co-Founders John Zimmer and Logan Green said in the memo. “We need 2023 to be a period where we can better execute without having to change plans in response to external events — and the tough reality is that today’s actions set us up to do that.”

In a filing Lyft said it was maintaining previously issued guidance on third quarter 2022 revenue, contribution margin and adjusted earnings before interest, taxation, depreciation and amortization. It had forecast revenue of $1.04 billion to $1.06 billion and Ebitda of $55 million to $65 million for the third quarter.

Lyft is also maintaining its 2024 financial targets for $1 billion in adjusted Ebitda with more than $700 million in free cash flow.

The cuts were reported earlier by Dow Jones.