Lyft is restructuring its micromobility division and laying off about 1% of its workforce in an attempt to cut costs, the company said in a Wednesday filing with the Securities and Exchange Commission.
The SEC filing came as part of a broader announcement from Lyft on the future of its bikes and scooters segment, which the company had been considering selling off last year. “One thing has become abundantly clear: Bikes and scooters are core to our purpose and make our company stronger,” Lyft CEO David Risher said in a blog post outlining the changes.
As part of its narrowing product portfolio, Lyft will stop operating standalone dockless bikes and scooters. It’s also renaming the division to Lyft Urban Solutions, which Risher said will “better reflect the role we play for cities around the world.”
Lyft operates Citibike in New York, and other similar services across other U.S. cities. It also powers bikeshare systems in more than 50 markets in 16 countries, including London, Madrid, Toronto, and Dubai.
Cost savings from the changes will help boost adjusted operating income by about $20 million on an annual basis by the end of 2025, Lyft said in the filing. Lyft had nearly 3,000 employees as of the end of 2023, according to its annual report.
Risher took over as CEO of the rideshare firm last year and cut hundreds of jobs and worked to improve rider prices as an attempt to fight Uber for market share. Lyft in August reported better-than-expected revenue for its second quarter of 2024 and posted a net profit for the first time.