Ride-hailing company Lyft has laid off 60 employees and is set to consolidate some regional operations, according to the Wall Street Journal.
[Update, July 22]: A Lyft spokesperson said the company planned to shutter its direct car-rental operations, which had five locations, but will continue to work with third-party rental providers Hertz and Sixt. The layoffs relate to that closure and some operations roles, according to the spokesperson.
"We have decided to discontinue Lyft's first party rentals business to focus on our best-in-class third-party rentals with Sixt and Hertz," according to the spokesperson. "This decision will ensure we continue to have national coverage and offer riders a more seamless booking experience."
The layoffs will affect less than 2 percent of the company's staff, according to the report, while the consolidation effort will scale back to nine global regions from 13 and include the closure of a location in Northern California and its Detroit hub.
In addition, Lyft is shuttering its car-rental operations but will continue to work with big-name rental providers Hertz and Sixt, according to the Journal.
The company in June partnered with Hertz to offer car rentals through its app starting in Austin, Charlotte, New Orleans, Kansas City and Nashville, with plans to offer the service nationwide, according to Lyft.
The downsizing comes after Reuters in May reported that competitor Uber would slow hiring and reduce marketing and incentive activity expenditures.