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 ride-hailing product and boosting profits.
The company also said in a regulatory filing Thursday that it decided scale back hiring plans and will eliminate 250 open job positions.
Lyft estimates that it will incur a cost of about $41 million to $47 million related to severance and employee benefits in the second quarter of 2023. The ride-hailing company also said it expects additional costs related to stock-based compensation and the corresponding payroll tax expense related to employees who were impacted by this restructuring.
Last week, Lyft’s newly appointed CEO David Risher told employees in an email that the company would significantly reduce its workforce as part of a restructuring effort. Risher said the restructuring would be part of Lyft’s plan to “better meeting the needs of riders and drivers.”
With an emphasis on ride-hailing, workers and industry watchers have speculated other departments such as its bike-sharing service will sustain the deepest cuts. Lyft did not disclose if the layoffs would focus on certain departments.
Lyft is scheduled to release its first-quarter earnings results May 4.
