Ride-hailing company Lyft Inc said on Thursday it would lay off about 1,072 workers, or 26% of its workforce.
David Risher, who took over as chief executive earlier this month, recently said the company would cut jobs significantly without providing the number of jobs that would be affected.
Lyft will also eliminate more than 250 open positions and incur approximately $41 million to $47 million in costs related to severance and employee benefits in the second quarter, it said in an exchange filing.
This is the second round of job cuts by Lyft, which faces competition from bigger rival Uber Technologies Inc in a slowing economy. It laid off about 683 employees, or 13% of its then workforce, in November.
It would also incur additional costs related to stock-based compensation, which could not be estimated at the time.
Lyft said the money saved from the job cuts would be used to improve service-levels for riders and drivers.
After coming out of the pandemic low, Uber and Lyft are caught in a battle for market share, and investors worry that Lyft’s prices will drop to avoid becoming second in the North American ride-sharing market. The cut will reduce its profit.
So far this year, Lyft stock has lost 8.6% of its value at Wednesday’s close, compared to Uber’s 20% gain.
(with inputs from Reuters)
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