New Delhi, September 4: Lyft, the ride-hailing company, is reportedly planning to lay off 1 per cent of its employees as part of its restructuring efforts. As per reports, the job cuts may impact the company’s bikes and scooters division. The decision is said to come as Lyft seeks to streamline its operations and improve efficiency within this segment.
As per a report of CNBC, Lyft, a popular ride-sharing company, is planning to sell its bike and scooter assets as part of their efforts to reduce costs. The company, known for its popular Citibike service in New York City and similar services in other US cities, announced in July 2023 that they were considering different options for this unit. Dunzo Layoffs: Reliance Retail-Backed Online Delivery Firm Lays Off 150 Employees, Assures To Pay Severance After It Secures Funding.
Several reports indicate that the company is having difficulty making a profit. The decision can be seen as a way of streamline operations and optimise their resources. As part of their plan, the company will lay off around 1 per cent of their workforce, which is approximately 30 employees out of their total of nearly 3,000 employees. According to reports, the company highlighted that they expect to achieve cost savings through restructuring, improving their operations, and implementing better sales strategies.
These efforts are projected to increase their adjusted operating income by approximately USD 20 million per year by the end of the following year. the company might enhance its financial performance and generate more income by making these changes. Lyft did not give specific information about which operations it plans to keep, but it did mention that it expects to experience charges of around USD 34 million to USD 46 million. Dozee Layoffs: Bengaluru-Based Healthcare Startup Lays Off 40–50 People To Cut Losses Amid Restructuring, Aims To Focus on AI and Business in US.
These charges are mainly associated with the costs of disposing of assets. As per multiple reports, Lyft has stated that they anticipate their restructuring plan to increase their annual adjusted earnings, before interest, taxes, depreciation, and EBITDA, by approximately USD 20 million by the end of 2025.
(The above story first appeared on LatestLY on Sep 04, 2024 07:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
