Lyft said Thursday it will cut 26% of its workforce, or about 1,072 people, as part of a restructuring plan aimed at rebuilding its core transportation product and boosting profits.
The company also said in a regulatory filing on Thursday it decided to reduce hiring plans and will eliminate 250 open jobs.
Lyft estimates that it will incur a cost of about $41 million to $47 million related to severance pay and employee benefits in the second quarter of 2023. The ride-sharing company also said it expects additional costs related to compensation based on shares and the corresponding payroll tax. expense related to employees who were affected by this restructuring.
Last week, new Lyft CEO David Risher told employees in an email that the company significantly reduce your workforce as part of a restructuring effort. Risher said the restructuring would be part of Lyft’s plan to “better serve the needs of riders and drivers.”
With an emphasis on the ride-sharing service, workers and industry observers have speculated that other departments, like its bike-sharing service, will see the deepest cuts. Lyft did not disclose whether the layoffs would be concentrated in certain departments.
Lyft is scheduled to publish its first-quarter earnings results on May 4.
—————————————————-
Source link