Lyft will lay off 13 percent of the workforce

Ride-hailing company Lyft plans to lay off some 683 employees, representing 13 percent of its workforce, according to a filing Thursday by the US Securities and Exchange Commission.

Related to the layoffs, the company estimates it will incur between $22 million and $32 million in restructuring and charges related to employee severance and benefit costs, which Lyft anticipates reaching in the fourth quarter of 2022.

Lyft is not making any changes to its previously published guidance for its third-quarter revenue, contribution margin, and adjusted expenses before interest, taxes, depreciation, and amortization. It’s also not altering its 2024 financial targets of $1 billion in adjusted EBITDA with more than $700 million in free cash flow.

The company laid off about 60 employees in July and consolidated some regional operations. In September, he instituted a U.S. hiring freeze, as first reported by the New York Post, and eliminated the 55-cent fuel surcharge he began charging in March. Starting Oct. 1, Lyft increased the service fee that US riders pay directly to the company to cover higher insurance costs, according to Reuters.

Lyft is scheduled to report third-quarter earnings on November 7.

Leave a Comment