Lyft announced on Thursday that 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. 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 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) (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
Lyft will also eliminate more than 250 job openings, according to the filing.
"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."