A ride share driver picks up passengers at O’Hare Airport on April 10, 2019 in Chicago, Illinois.
Scott Olson / Getty Images
Lyft is laying off 982 employees and furloughing an additional 288, the company announced in a regulatory filing on Wednesday.
The layoffs account for 17% of the company’s workforce, Lyft said. Lyft also has implemented reductions in base salary for exempt employees for a twelve week period. The salary cuts, which begin in May, will consist of a 30% reduction for executive leadership, 20% for vice presidents and 10% for all other exempt employees, Lyft said.
Lyft said it expects to incur approximately $28 million to $36 million of restructuring and related charges from the layoffs, primarily related to employee severance and benefits. The company said that will mostly impact its second quarter. Lyft’s board member’s will also forego 30% of their cash compensation for the second quarter of 2020.
Lyft’s filing comes just a day after The Information reported that competitor Uber is discussing laying off 20% of its staff. Uber declined to comment.
Lyft is up more than 5% on a mostly up day for tech stocks.
This is a developing story
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