NEW YORK: US ride-hailing company Lyft announced a fresh round of layoffs on Friday just days after new boss David Risher took charge of the Uber rival, reported German news agency dpa.
“We will significantly reduce the size of the team as part of a restructuring to focus on better meeting the needs of riders and drivers,“ Risher told workers in an email posted on the company’s website.
Costs need to be cut more in order to achieve “profitable growth” and the headcount reduced further to become “a faster, flatter company,“ wrote Risher, a former executive with Amazon and Microsoft.
Lyft's shares rose more than 6 per cent in reaction.
Risher did not give details on the extent of the layoffs. He told workers they would be notified of their employment status next Thursday.
The Wall Street Journal reported at least 1,200 of the approximately 4,000 employees are to be let go.
Lyft already made major job cuts in November. At that time, 13 per cent of the workforce was to be laid off as part of a comprehensive cost-cutting plan.
In March, the company's founders Logan Green and John Zimmer announced they were stepping away from the company's management. Risher was appointed as the new CEO, a job he officially took up on Monday. -Bernama
