Ride-hailing company Lyft plans to terminate about 683 employees, representing 13 percent of its workforce, according to a Thursday U.S. Securities and Exchange Commission filing.
In connection with the layoffs, the company estimates that it will incur between $22 million to $32 million of restructuring and related charges related to employee severance and benefit costs, which Lyft anticipates will hit in the fourth quarter of 2022.
Lyft is making no changes to its previously released guidance for its third-quarter revenue, contribution margin, and adjusted expenses before interest, taxes, depreciation and amortization. It also is not altering its 2024 financial targets for $1 billion in adjusted EBITDA with more than $700 million in free cash flow.
The company laid off about 60 employees in July and consolidated some regional operations. In September, it instituted a U.S. hiring freeze, as first reported by the New York Post, and eliminated the 55-cent fuel surcharge it started charging in March. As of Oct. 1, Lyft increased its service fee that U.S. riders directly pay to the company to cover higher insurance costs, according to Reuters.
Lyft is scheduled to report third-quarter earnings on Nov. 7.