San Francisco, April 28: Ride-hailing platform Lyft has announced it will slash 26 per cent of its workforce, or nearly 1,072 people, as part of a restructuring plan. The company has also paused hiring plans and will eliminate 250 open job positions.

"Lyft announced a restructuring plan as part of its efforts to reduce operating costs. The plan involves the termination of approximately 1,072 employees, representing 26 per cent of the company's employees," it said in a US Securities and Exchange Commission (SEC) filing late on Thursday. Clubhouse Layoffs: Social Audio Platform Sacks Over 50% Staff as Part of Restructuring.

The company estimated that the move will incur a cost of approximately $41 million to $47 million related to severance and employee benefits in the second quarter of 2023, all of which will be future cash expenditures.

"In the same quarter, the company also expects to incur an additional cost related to stock-based compensation and the corresponding payroll tax expense related to employees who were impacted by this restructuring," said Lyft. Last week, Lyft announced to significantly reduce the size of the team "as part of a restructuring to focus on better meeting the needs of riders and drivers".

"I own this decision, and understand that it comes at an enormous cost. We're not just talking about team members; we're talking about relationships with people who've worked (and played) together, sometimes for years," said Lyft CEO David Risher. Vice Layoffs: Media Company Cancels Flagship ‘Vice News Tonight’, Expected To Cut Over 100 Jobs.

Those impacted will get at least 10 weeks of pay, with additional weeks for team members with more than four years with Lyft.

"We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on this purpose. And we need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth," said the CEO.

(The above story first appeared on LatestLY on Apr 28, 2023 11:09 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website