By Sam Boughedda
Lyft (NASDAQ:LYFT) maintained its first-quarter guidance in an announcement on Friday but revealed it will "significantly reduce the size of the team" as part of a restructuring.
In an email to employees, Lyft CEO David Risher said the restructuring will take place to focus on better meeting the needs of riders and drivers. The announcement follows a report by the WSJ earlier in the day that said the company plans to cut 1,200 or more jobs in a new round of layoffs.
Lyft anticipates Q1 revenue to be around $975 million, with adjusted EBITDA expected to be between $5M and $15M. The company's shares are up just under 1% on Friday, trading around the $9.93 mark at the time of writing. However, in 2023 it has declined by over 13% and fallen more than 73% in the last 12 months as it struggles to keep up with rival Uber (NYSE:UBER).
Lyft is reducing its workforce in order to cut costs and become a "faster, flatter" company. The ride-sharing firm said it will use the savings to invest in competitive pricing, faster pick-up times, and better driver earnings.
Risher, who formally started as Lyft CEO on April 17, said in his email that employees will be sent an email with their employment status next Thursday, and all offices will be closed on the day.
"I know this creates uncertainty between now and then, but given how many of you know or suspect this is coming, we wanted you to be prepared," the email states.