UBER - Lyft rises as company said to cut at least 1200 employees

2023-04-21 12:10:22 ET

Lyft ( NASDAQ: LYFT ) shares erased earlier losses and gained more than 2% on Friday after it was reported that the company could let go at least 1,200 employees.

The ride-sharing company, which named board member David Risher as its new CEO last month, could let go as much as 30% of the company's full-time employees, The Wall Street Journal reported , citing people familiar with the matter.

Lyft ( LYFT ) did not immediately respond to a request for comment from Seeking Alpha.

In November, Lyft ( LYFT ) said it would lay off 13% of its workforce, the ride-sharing firm's second round of layoffs since July. That round of layoffs impacted 683 employees, Lyft ( LYFT ) said in a filing with the Securities and Exchange Commission, with the restructuring costing between $27M and $32M.

In July, Lyft ( LYFT ) laid off roughly 60 employees and began to reorganize its global operations and shutter some regions. The company also stopped renting cars to riders, instead working with existing car rental companies.

Risher, who started this month, replaced the company's two co-founders, Logan Green and John Zimmer, as the ride-sharing firm struggles in competition with Uber Technologies ( UBER ).

Green and Zimmer, who previously served as CEO and President, moved into non-executive roles as Chair and Vice Chair of the company's board, effective April 17 and June 30, respectively.

Following his appointment as CEO, Risher said Lyft ( LYFT ) intended to be "price competitive" but that it was not for sale .

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