Lyft shares slump on report of layoffs, corporate restructuring

Wed, 29 Jan 2020 18:40:47 GMT

Lyft Inc. plans to announce a corporate restructuring on Wednesday that will result in layoffs, according to a report in the New York Times, citing unnamed people familiar with the matter. The news sent Lyft shares tumbling nearly 2% in mid-day trading. Lyft officials were not immediately available for comment. The ride-hailing service has consistently lost money, raising questions about its ability to turn a profit. Lyft Chief Executive Logan Green has said it would be profitable by late 2021, if it excluded some costs. Lyft's larger rival, Uber Technologies Inc. , has also hemorrhaged money, and slashed more than 1,000 jobs last year in several rounds of cuts. Lyft shares are up 11% the past 12 months. The broader S&P 500 is up 22.5% over the past year.

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