In a series of questions on the company’s ability to stop its huge losses and show how it can achieve profitability, Lyft has announced a cut in its personnel. The company employs about 90 workers or about 1.6 % of its 5,500 employees. The New York Times revealed the layoffs first— although Lyft declined to include them in a broader corporate overhaul, as the Times originally reported.
According to a spokesman, the terminations would impact the commercialization and distribution divisions of Lyft. The company moves from community to more regionally focussed marketing teams, while the business team revitalizes its most important markets.
“We assessed carefully the tools needed to reach our business goals for 2020, and this is expressed in the consolidation of certain departments,” a speaker said. “We continue to grow quickly and this year we expect to hire more than 1,000 new employees.”
The Lyft CEO and Logan Green co-founder also said that at the end of 2021, one year away from its initial estimate, he expects the business to become profitable in an adjusted income. Nonetheless, recent profit results from Lyft have given investor concerns about the near-term future of the company.
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Lyft said in the third quarter of 2019 it lost $463.5 million, about twice as much as last year’s loss over the same period. The hail corporation created almost a billion dollars in revenue–955,6 million dollars to be precise–which marks a rise of 63% year over year compared to 585 million dollars in revenue in the third quarter of 2018. Lyft announced that its earnings before interest, tax, depreciation, and amortization in the past quarter had dropped by $644 million, or $197 million when accounting for the so-called EBITDA.
Uber and Lyft, both published this year, have established records for their losses in the run-up to their respective IPOs. Everyone has been deceiving institutional and retail investors ever since it became public. In its own restructuring efforts, Uber had been laying off around 1.000 workers last year.
The organization has made some growth in lowering its losses. The company lost $245,3 million (Q3 2018) to $121,6 million in updated websites in the most recent quart, for example, of sales from $585.0 million in the same period to $955.6 million (Q3 2019). The profits of the company including all expenses increased during the year.
