Lyft Inc. is cutting jobs and consolidating some operations, while shutting its rental business.
The company is reportedly cutting 60 workers and reducing its global operations team by trimming regions from 13 to 9, according to an employee memo reviewed by the Wall Street Journal.
The cuts involve less than 2% of staff and mainly affected employees who worked in operations.
Lyft shares rose around 8% Wednesday to close at $14.70.
LYFT TO ESTABLISH A HYBRID MODEL OF DRIVER, AUTONOMOUS VEHICLES
The company is folding the part of its business that allowed customers to rent its fleet of cars on the app.
The company said it is going to continue working with big car-rental companies, with car-rental partnerships with Sixt SE and Hertz Global Holdings Inc. in more than 30 locations, a spokeswoman said.
Lyft’s car-rental business had five locations.
LYFT SHARES TANK 26% ON HIGHER COST OF GETTING DRIVERS BACK ON STREET
“Our road to scaling first party rentals is long and challenging with significant uncertainty,” according to the memo, sent by Cal Lankton, vice president of fleet and global operations at Lyft. Lankton wrote that conversations about exiting the business started last fall and “then accelerated as the economy made the business case unworkable.”
In the reorganizing of global operations team, the company is closing a location in Northern California and its Detroit hub, according to the memo.
Lyft’s stock has fallen more than 70% in the past 12 months.
CLICK HERE TO READ MORE ON FOX BUSINESS
In May, rival Uber Technologies Inc. said it would slow hiring. Its stock has halved over the same period.