Uber Rival Lyft To Lay Off 1% Of Employees, Sell Assets To Reduce Costs

Uber’s rival ride-hailing platform, Lyft Inc. LYFT, said on Wednesday that it will lay off about 1% of its employees in a bid to reduce operating costs.

What Happened: The restructuring plans also involve the disposal of assets related to the bikes and scooters operations of the company, the company said in an SEC filing.

The company expects to incur about $34 million to $46 million in charges as part of the restructuring, primarily in the third quarter of 2024 and substantially completed by the end of the fourth quarter.

The company said that it expects the restructuring to improve its annualized Adjusted EBITDA by approximately $20 million by the end of 2025.

Lyft had 2,945 employees as of December 31, 2023, after terminating about 1072 employees in April 2023.

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Why It Matters: Lyft reported adjusted EBITDA of $102.9 million in the second quarter as compared to $41.0 million in the corresponding period last year.

For the third quarter, it expects adjusted EBITDA of $90 million to $95 million.

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