San Francisco rideshare company Lyft has decided to "significantly reduce" the size of its team through layoffs, according to a Friday blog post from new CEO David Risher.
A report from the Wall Street Journal said the company plans to cut at least 1,200 jobs—equivalent to 30% or more of the company's workforce—in an effort to slash costs by 50%.
"We need to be a faster, flatter company where everyone is closer to our riders and drivers so we can deliver on this purpose," Risher wrote in the blog post. "And we need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth."
The company has shown signs of distress amid larger volatility in the tech sector and conducted a round of layoffs in November that shed around 700 jobs, roughly 13% of its workforce.
Lyft co-founders Logan Green and John Zimmer stepped down as the company's CEO and president in March as the company's stock price continued its downward slide. Risher became Lyft CEO on Monday, April 17.
Lyft's stock price declined by around 70% over the past year, and the company continues to lose market share to Uber, which now controls around 74% of the U.S. rideshare market, according to research firm YipitData.
“David has made clear to the company that his focus is on creating a great and affordable experience for riders and improving drivers’ earnings," a Lyft spokesperson said in a statement. "To do so requires that we reduce our costs and structure our company so that our leaders are closer to riders and drivers. This is a hard decision and one we’re not making lightly. But the result will be a far stronger, more competitive Lyft."