Lyft Inc said on Wednesday it plans to lay off 982 employees, or 17% of the company's workforce, and implement pay cuts due to economic challenges caused by the coronavirus pandemic.
The company's shares were up 5% in afternoon trading.
The ride-hailing business has suffered a near-total collapse as large parts of the United States remain shut to combat the spread of the virus.
Rival Uber Technologies Inc is also discussing plans to cut around 20% of its staff following the virus outbreak, The Information reported on Tuesday.
Lyft said it will cut base salaries by about 30% for top executives, 20% for vice presidents and 10% for the rest, for a twelve week period beginning in May, in addition to furloughing 288 employees. (https://bit.ly/2KG7iXs)
The company said it estimates to incur about $28 million to $36 million of restructuring charges, primarily related to the layoffs, according to a regulatory filing.
Lyft directors have voluntarily agreed to forego 30% of their cash compensation for the second quarter of 2020, the company said.
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