Lyft Inc (NASDAQ:LYFT) has announced it will be laying off staff and it will be making changes to its bikes and scooters offering as part of a restructuring plan aimed at cutting costs.
The San Fransisco-based ride-share platform said it will lay off 1% of its nearly 3,000 employees as of the end of 2023 and will incur about $34 million to $46 million in charges largely related to asset disposal costs.
The company said it will rename its bikes and scooters division as “Lyft Urban Solutions.”
“We are discontinuing our dockless scooters in Washington, DC, and are exploring alternatives for our dockless bikes and scooters in Denver,” the company said.
The impact on its other bike services, such as its Citibike offering in New York City, was not disclosed.
Cost savings from the restructuring when combined with improved operations and sales strategies will boost Lyft’s operating income by about $20 million on an annual basis by the end of next year, the company said.
Shares of Lyft traded higher on the news, adding 0.8% at about $11.