- Lyft is planning to restructure its business and cut jobs, the New York Times reported Wednesday.
- Since its debut on the public market last April, Lyft has fended off investor concerns and questions on its ability to turn a profit.
- The report comes ahead of the company's first fiscal quarter earnings report in 2020, set to be released on February 11th.
- Lyft did not respond immediately to a request for comment.
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Ride-hailing company Lyft is planning a major corporate restructuring, a move that will result in layoffs, according to the New York Times reporters Kate Conger and Mike Isaac on Wednesday.
The report says the scope of the layoffs are unclear, but notes that an announcement is expected on Wednesday.
Lyft did not respond immediately to a request for comment from Business Insider.
Shares of Lyft were down roughly 3% following the report on Wednesday.
The company's potential move to slash its headcount and restructure some of its operations come a few weeks ahead of its first quarter earnings report in 2020, set to be released on February 11th.
Since its high-profile debut on the stock market, Lyft has struggled to fend off investor concerns on its business model, which prioritizes growth over turning a profit. Both Lyft and its chief competitor Uber hooked riders by subsidizing rides and paying incentives to drivers. But lackluster IPOs have increased pressure on these companies to turn a profit.
Lyft cofounders Logan Green and John Zimmer attempted to allay those concerns in October, announcing at the Wall Street Journal's Tech Live Conference that they expected the company to be profitable a year ahead of analyst forecasts, by the fourth quarter of 2021. Lyft reiterated that commitment when it reported third quarter earnings later that month.