The Lift Logo is displayed at the Nasdaq Marketplace in New York City on March 29, 2019. The company announced plans to significantly reduce employment. File photo by John Angelillo/UPI | License Photo
April 21 (UPI) -- Lyft has announced a series of layoffs as the rideshare company struggles to remain competitive.
"I'm confirming that we will significantly reduce the size of our team as part of a restructuring to focus on better meeting the needs of riders and drivers," Lyft CEO David Risher said in an email to employees Friday.
"We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver affordable rides, compelling earnings for drivers, and profitable growth," Risher continued, "we intend to use these savings to invest in competitive pricing, faster pick-up times, and better driver earnings."
Risher said employees would be sent email updates on their status on April 27.
The company says it will provide 10 weeks of pay and healthcare coverage through Oct. 31 to affected employees.
Lyft co-founders, John Zimmer, who served as president, and Logan Green, who served as CEO, announced in March that they would shortly step down from their positions. On April 17, Risher took over as CEO.
Lyft shares plummeted more than 70% over the year prior to the announcement but rose 5% following news of the leadership change.
"All founders eventually find the right moment to step back and the right leaders to take their company forward," Green said of his resignation.
In February, Lyft's main competitor, Uber, announced layoffs as part of a performance review. Uber says the company plans to backfill the vacant positions.