Lyft (NASDAQ:LYFT) has revealed a restructuring plan targeting its bikes and scooters segment to streamline operations and reduce costs.
The plan includes the disposal of related assets and the termination of about 1% of its workforce.
Lyft anticipates restructuring charges between $34 million to $46 million, mostly non-cash charges linked to asset disposals, and expects substantial completion by the end of Q4 2024.
The restructuring plan is expected to boost the company's annual adjusted EBITDA by approximately $20 million by the end of 2025 through headcount reduction savings, operational efficiencies, and commercial strategy enhancements.
Despite the restructuring plan, the company confirmed no changes to its existing financial guidance and will provide more details during its third-quarter earnings call in November 2024.