Ride-sharing company Lyft plans to lay off about 683 employees, representing 13% of its workforce, according to a filing Thursday with the U.S. Securities and Exchange Commission.
As part of the layoffs, the company estimates it will incur between $22 million and $32 million in restructuring and related severance and benefits costs, which Lyft expects to reach in the fourth quarter of 2022.
Lyft is making no changes to its previously released guidance for third quarter revenue, contribution margin and adjusted expense before interest, taxes, depreciation and amortization. It also does not change its 2024 financial targets for $1 billion in adjusted EBITDA with more than $700 million in free cash flow.
The company laid off around 60 employees in July and consolidated some regional operations. In September, he instituted a U.S. hiring freeze, as first reported by the New York Post, and eliminated the 55-cent fuel surcharge he began charging in March. Since Oct. 1, Lyft has increased its service fee that U.S. passengers pay directly to the company to cover higher insurance costs, according to Reuters.
Lyft is expected to report third quarter results on Nov. 7.