Less than two weeks after new CEO David Risher came on board, Lyft has announced a restructuring plan that will lay off 1,072 employees, about 26 percent of the company’s workforce, according to a Thursday filing with the U.S. Securities and Exchange Commission. Lyft also will scale back on hiring and has eliminated more than 250 open positions. 

The company estimates that it will incur a cost of $41 million to $47 million related to severance and employee benefits in the second quarter of 2023. Lyft also expects to incur an additional cost related to stock-based compensation and the corresponding payroll tax expense related to employees affected by the restructuring. 

Lyft intends to use the operating cost savings associated with the restructuring to support “continued service-level improvements benefiting riders and drivers.”

The company said it would provide more details during its first-quarter earnings call, scheduled for May 4.

[Update, April 27] The company on Thursday also announced that Kristin Sverchek will succeed John Zimmer as president of Lyft as of July 1. Risher had previously planned to assume that role as well as CEO, but instead recommended Sverchek take on that responsibility. Sverchek, current president of business affairs and former Lyft general counsel and secretary, has been with the company since 2012. She will report directly to Risher.

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