Lyft to Restructure Bike and Scooter Rental Program, Cut Some Jobs

Lyft (LYFT) will cut some jobs and restructure its bike and scooter rental service as part of a broader effort to “align strategic priorities and to reduce operating costs” after reporting its first-ever profitable quarter last month.

The restructuring will result in an estimated charge between $34 million to $46 million, which the company expects to be represented mostly in its third quarter earnings report later this year.

The company said it also plans to cut about 1% of its jobs in relation to the changes to its scooter and bike program. That roughly translates to 30 employees out of Lyft’s reported 2,945 headcount at the end of fiscal 2023.

Restructuring Comes After First Profitable Quarter

Last month, the company reported a profit for the second quarter, its first time doing so as a public company. While it was just a $5 million profit on $1.44 billion in revenue, the quarter marks a positive step for Lyft as it also said it remains “on track to generate positive free cash flow for the full year.”

In the long term, Lyft said Wednesday the restructuring plan should provide a boost of roughly $20 million by the end of 2025 to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) because of the job cuts and other “operational efficiencies”.

Lyft shares were up 1.9% to $11.57, but have lost roughly 22% since the start of the year.