By Sam Boughedda
Lyft (NASDAQ:LYFT) is cutting 13% of its workforce or approximately 683 employees, the company said in a filing on Thursday.
It is the second round of job cuts at the ride-hailing firm in recent months. In July, the company cut about 60 jobs in its rental division as it aimed to reorganize as costs increased.
Lyft stated the latest round of cuts is part of its efforts to reduce operating expenses and adjust cash flows.
The layoffs will result in the company incurring approximately $27 million to $32 million of restructuring and related charges related to employee severance and benefits costs.
Lyft confirmed in the filing that there have been no changes to its previously issued guidance regarding third-quarter 2022 revenues, contribution margin and adjusted EBITDA, and its 2024 financial targets for $1 billion in adjusted EBITDA with more than $700 million in free cash flow.
"The announced reduction in force is a proactive step to ensure the company is set up to accelerate execution and deliver strong business results in Q4 of 2022 and in 2023," Lyft said.
Lyft is scheduled to report its third-quarter results on Monday, November 7.