Lyft is scaling back on hiring in the U.S. and cutting down on its budget across several departments as the rideshare giant fights against the downwinds from a slowing economy. With this move, Lyft is following in the footsteps of its chief rival Uber, which has experienced similar pains.

On Tuesday, the Wall Street Journal reported that Lyft President John Zimmer announced the decision in a memo issued to staff. In it, Zimmer offered assurances that no layoffs were on their way but said these measures are necessary to protect its falling share price.

“Given the slower than expected recovery and need to accelerate leverage in the business, we’ve made the difficult but important decision to significantly slow hiring in the U.S.,” said Zimmer.

"Our near-term action plan will be focused on accelerating profits—whether we like it or not, that’s the ticket of entry in today’s market," he continued.

Zimmer’s announcement comes at a time of increased volatility and tumult across the stock market as concerns about the U.S. economy tipping into recession in the near-future and a more hawkish Federal Reserve loomed large for companies.

It also arrives after Uber CEO Dara Khosrowshahi said that the company would pause hiring and prioritize maximizing profits over seeking further market expansion.

Both companies have seen their share values battered in the recent tumult. Lyft saw its shares decline by more than 15% on Tuesday before a slightly over 1.5% increase later in the day. Uber saw a 12% drop on Monday before a small rally by Wednesday when it rose slightly.

Beyond sharing concerns that are gripping the wider stock market, the two rideshare companies have their own set of problems that are weighing them down.

Uber and Lyft have been contending with a labor shortage that began during the COVID-19 pandemic that has, in turn, pushed up their fares for riders. On top of this, both struggle in the way they compete in both the commodity and resource markets.