Lyft CEO David Risher said Friday the ride-hailing company will “significantly” cut jobs in one other round of layoffs to cut back costs, sending its shares up about 4%.
The corporate declined to offer details on the variety of affected staff, but the Wall Street Journal reported earlier within the day the move could impact 30% of Lyft’s workforce, or greater than 4,000 employees.
The choice comes weeks after the newly appointed CEO said Lyft was not on the market, disappointing some investors who had speculated that the exit of the corporate’s founders would pave the best way for a deal and pushed up its stock last month.
Lyft could see costs slashed by half after the layoffs, the WSJ report said.
The corporate in November laid off about 683 employees, or 13% of its then workforce, to chop costs and address stiff competition from larger rival Uber Technologies in a tricky economy.
The 2 firms have been locked in a battle for market share coming off the pandemic lows, and investors worry that Lyft’s price cuts to avoid being a distant second within the North American ride-sharing market would squeeze its profits.
The businesses’ last reported results showed that Uber’s global presence and more diversified businesses were giving it an edge over US-focused Lyft.
Lyft’s stock had fallen about 11% this 12 months, compared with Uber’s price gain of 27.5%, as of Thursday’s close.
