Lyft Announces Laying Off Around 2% Workforce as Part of Restructuring

Lyft Announces Laying Off Around 2% Workforce as Part of Restructuring

Business

Lyft, a California-based ride-hailing company, is saying goodbye to around 90 employees on account of reorganization. On Wednesday, the American company announced that it had to lay off around 2% of its staff as it looks to achieve the feat of profitability by late 2021. According to the company, the reformation has taken place in two Lyft teams, namely marketing and sales. Currently, the ride-hailing giant operates in the US’ 95% cities, including Vancouver, Toronto, and some cities in Canada. The company noted that it had hired more than 5000 people.

Alexandra LaManna, a Lyft representative, said they have carefully estimated the resources essential for achieving the current year’s business goals. The executive added the effort of reorganizing teams reflects the future plans of the company. According to the Lyft spokesperson, the company also aims to appoint over 1000 staff this year. Well, the official has not offered further details regarding the same. But Alexandra noted they are still rising rapidly. Lyft has faced intense pressure from its rivals, like Uber, to reveal a path to viability after a record of lack of profitability and cash burn. Besides, the news of lay off arrives as investors are pressing both companies to clean out their finances. Even more, financiers are expecting the ride-hailing companies to gain profitability after creating their public market inaugurations in 2019.

On the other hand, Logan Green, Lyft’s CEO, said the company aims to gain profits on a revised EBITDA basis in Q4, 2021. (Here, EBITDA in a short form for earnings before interest, tax, depreciation, and amortization). Whereas, Lyft’s latest proceeds have stimulated investor concerns regarding the company’s short-sighted future. According to Lyft, it has lost $463.5 million in Q3, 2019. Notably, the figure is almost double than the amount Lyft had lost over the same period in 2018. Even more, in the earlier quarter, Lyft has announced a loss of around $650 million or $197 million since regulating for EBITDA. Above all, in 2019, both Uber and Lyft went public. Both have break records for the capital loss in the lead-in to their IPOs. Even more, the two ride-hailing companies have disappointed retail and institutional investors after going public.

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