Lyft to lay off more than 1,000 employees in cost-cut push

Ride-hailing company Lyft Inc said it would lay off about 1,072 employees, or 26% of its workforce, in one of the first steps by new chief executive David Risher, driving the company’s stock price to around 1.5% on Thursday. Increased by 1%.

Risher, who took office earlier this month, recently said the company would cut jobs “significantly” but did not specify how many jobs would be affected.

Lyft also plans to exit more than 250 open positions in the second quarter and incur approximately $41 million to $47 million in costs related to severance and employee benefits, the company said in a statement to the exchange. stated in the submission.

There are also additional costs associated with stock-based compensation that cannot be estimated at this time.

The money saved from the job cuts will be used to support “improved service levels” for passengers and drivers, Lyft said, and will provide more details in its first-quarter earnings call on May 4. promised.

This is the second job cut by Lyft as it faces competition from bigger rival Uber Technologies Inc in a slowing economy. The company laid off about 683 employees in his November, or 13% of his workforce at the time.

Coming out of pandemic lows puts Uber and Lyft in a battle for market share, with investors looking to profit from Lyft’s price cuts to avoid a wide second place in the North American ride-sharing market. I am concerned that it will put pressure on

As of Wednesday’s close, Lyft’s shares are down 8.6% so far this year, while Uber’s are up 20%.

Reported by Yuvraj Malik, Bangalore. Edited by Shailesh Kuber and Arun Koyyur

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