The rideshare company Lyft, a main competitor to Uber, said Friday it would be laying off hundreds of people in a restructuring meant to cut costs.
New CEO David Risher said, responding to questions about possible redundancies, "Now I'm confirming that 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 said, "We need to bring our costs down to deliver affordable rides, compelling earnings for drivers and profitable growth."
The CEO said that on April 27 an email would go out to employees to confirm their employment status with the company.
Lyft currently employs around 4,000 people.
Lyft spokeswoman Sona Iliffe-Moon said in a statement reported on by the New York Times, "This is a hard decision, and one we're not making lightly."
Lyft, which has for years trailed its competitor Uber, had invested in food delivery and its ride-hailing business, and was doing well after the pandemic.
That took a turn, and employees have now been expecting possible layoffs for months.
Risher said, "I own this decision, and understand that it comes at an enormous cost. We're not just talking about team members; we're talking about relationships with people who've worked — and played — together, sometimes for years."