Lyft laying off almost 1000 employees due to "ongoing economic challenges"

Lyft is terminating 17% of its workforce, according to a filing through the US Securities and Exchange Commission.

On Wednesday, the San Francisco-based ride-sharing company said that it is committed to a “plan of termination as part of the company’s efforts to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the company’s business.”

The termination includes approximately 982 employees.

According to its filing, Lyft estimates that it will incur approximately $28 million to $36 million of restructuring and related charges primarily related to employee severance and benefits costs, the majority of which the it expects to incur in the second quarter of 2020.

Additionally, to reduce costs in light of the COVID-19 pandemic, Lyft said it has furloughed approximately 288 employees and has implemented reductions in base salary for exempt employees for a 12 week period beginning in May.

They say that this consisting of a 30% reduction for executive leadership, 20% for vice presidents and 10% for all other exempt employees.

Just over a week ago, on April 20, Lyft announced it was committing $6.5 million to COVID-19 relief efforts, focusing specifically on initiatives that support drivers and vulnerable communities.