Lyft will cut jobs “significantly” in the new CEO’s first major move

City says 7,000 summer jobs are available for Boston youth ages 14 to 18

Apr. 21 (Reuters) – Lyft Inc (LYFT.O) CEO David Risher He said On Friday, the commuter carrier will “significantly” cut jobs in another round of layoffs to reduce costs, which will lift its shares about 4%.

The company declined to provide details on the number of employees affected, but the Wall Street Journal reported earlier in the day that the move could affect 30% of Lyft’s workforce, or more than 4,000 employees.

The decision comes weeks after the newly appointed chief executive announced that Lyft is not for sale, disappointing some investors who expected the company’s founders’ exit would pave the way for a deal and drive its stock last month.

A Wall Street Journal report said Lyft could see costs drop by half after layoffs.

The company in November laid off about 683 employees, or 13% of its workforce at the time, to cut costs and deal with stiff competition from bigger rival Uber Technologies Inc (UBER.N) in a tough economy.

The two companies have been locked in a battle for market share from the lows of the pandemic, and investors worry that Lyft’s price cuts to avoid being number two in the North American ride-sharing market will squeeze its earnings.

The companies’ most recent reported results show that Uber’s global presence and more diversified business gives it an edge over US-focused Lyft.

Lyft stock is down about 11% this year, compared to Uber’s price gain of 27.5%, as of Thursday’s close.

Reporting by Akash Sriram in Bengaluru; Editing by Anil D’Silva

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