Lyft said it will lay off nearly 1,000 employees, or about 17 percent of its workforce, as the novel coronavirus pandemic continues to decimate the already cash-strapped ride-hailing industry. The layoffs, which the company announced in a filing with the Securities and Exchange Commission on Wednesday, come as the company’s larger rival, Uber, is reportedly also contemplating steep cuts of its own.
Lyft says it will terminate 982 employees, which it anticipates will cost between $28 million to $36 million in “restructuring and related charges primarily related to employee severance and benefits costs,” the filing states.
The company says it will also furlough 288 employees and reduce salaries for exempt employees for a 12-week period. Lyft’s executive team will take a 20–30 percent pay cut, while all other non-furloughed employees will see their salaries reduced by 10 percent. Members of Lyft’s board of directors have voluntarily agreed to forgo 30 percent of their cash compensation for the second quarter of 2020.
Lyft’s ride-hailing business has dried up as a result of widespread shutdown orders due to the pandemic.