Lyft said it’s laying off 982, or 17%, of its workforce, amid covid-9 pandemic. The ride-hailing company also furloughed another 288 workers.
The workforce reductions are a part of Lyft’s aim to save on operating expenses and to adjust cash flows against the economic turbulence posed by the covid-19 pandemic, as indicated by the company.
Lyft estimates the terminations will cost $28 million to $36 million in restructuring and related charges, largely due to severance and benefits costs.
By cutting 17% of its workforce, Lyft will incur $28 million to $36 million in restructuring and related charges, primarily due to severance and benefits costs, as per the company’s estimates. The major portion of the cost will be reflected in the second quarter results, according to the company.
The company has also lowered base salaries for 12 weeks for overtime-exempt employees - 30% for executive leadership, 20% for vice presidents and 10% for all other exempt employees