Lyft: restructuring in sight, 1% of jobs cut

(CercleFinance.com) - Lyft announced on Wednesday that it intends to cut around 1% of its workforce as part of a restructuring program that will affect its bicycle and scooter activities.


The specialist in chauffeured transportation vehicles (VTC), which is seeking to reduce its costs, explains that it also intends to dispose of certain assets belonging to the branch.

In connection with these initiatives, the San Francisco-based group expects to book charges of between $34 and $46 million, of which between €32 and €42 million are to be related to asset disposals alone.

These provisions are expected to be recorded mainly in the third quarter, and in part during the fourth quarter, it states in a financial notice.

In the document, Lyft stresses, however, that these measures should enable it to improve its adjusted operating income (Ebitda) by around 20 million euros on an annualized basis by the end of fiscal 2025.

The company adds that its financial forecasts for the third quarter and full fiscal 2024 remain unchanged.

The company had stunned the market at the beginning of August by presenting targets deemed cautious by analysts, against a backdrop of increasing capital expenditure.

Following these announcements, Lyft shares climbed by almost 3% on Wednesday morning, while the Nasdaq rebounded by 0.4%. The stock is still down 22% year-to-date.

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