Lyft to cut about a quarter of workforce in latest round of layoffs
Lyft will also eliminate more than 250 job openings
Lyft incoming CEO David Risher discusses the changes he will make to turn the company's stock around on 'The Claman Countdown.'
Lyft announced Thursday it will cut more than 1,000 jobs and curb hiring as part of a restructuring plan to reduce operating costs.
The ride-share company said 1,072 workers will be impacted by the layoffs, according to a filing with the Securities and Exchange Commission (SEC). The cuts, which equate to 26% of the company’s workforce, were foreshadowed last week in a staff-wide email from new Lyft CEO David Risher that did not include a specific number.
LYFT WILL IMPLEMENT MORE JOB CUTS
"We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on [Lyft’s] purpose," Risher, who assumed his new role over a week ago, said in the April 21 message. "And we need to bring our costs down to deliver affordable rides, compelling earnings for drivers and profitable growth."
Lyft signage on a vehicle as it exits the ride-sharing pickup at San Francisco International Airport in San Francisco, California, U.S., on Thursday, Feb. 3, 2022. Lyft Inc. is scheduled to release earnings figures on February 8. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
Lyft will also eliminate more than 250 job openings, according to the Thursday filing.
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"In connection with the plan, the Company estimates that it will incur a cost of approximately $41 million to $47 million related to severance and employee benefits in the second quarter of 2023, all of which will be future cash expenditures," Lyft said. "In the same quarter, the Company also expects to incur an additional cost related to stock-based compensation and the corresponding payroll tax expense related to employees who were impacted by this restructuring."
Lyft logo displayed on a phone screen is seen in this illustration photo taken in Krakow, Poland on July 8, 2021. (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
The ride-share company said it will disclose those additional expenses in the second quarter, citing them having some dependence on the future stock price. Its first-quarter financial results are slated for release in early May.
A car for hire with a Lyft sticker in 2018. (iStock / iStock)
The latest round of layoffs comes after Lyft cut nearly 700 staffers in November. Those cuts were reportedly preceded by some layoffs in the summer.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 16.79 | +0.50 | +3.07% |
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Lyft said it plans to put the savings expected from the restructuring announced Thursday toward "continued service-level improvements benefitting riders and drivers."
The company's workforce at the end of 2022 totaled about 4,400, according to the ride-share company’s annual report.