Lyft Inc.
09/04/2024 | Press release | Distributed by Public on 09/04/2024 05:41
Regulation FD Disclosure Form 8 K
Item 2.05 Costs Associated with Exit or Disposal Activities
On September 4, 2024, Lyft, Inc. (the "Company") announced a restructuring plan related to its bikes and scooters transportation mode as part of its efforts to align strategic priorities and to reduce operating costs. The plan involves the disposal of certain assets related to the bikes and scooters operations and the termination of approximately 1% of the Company's employees. In connection with the plan, the Company estimates that it will incur approximately $34 million to $46 million of restructuring and related charges, of which $32 million to $42 million are related to asset disposal costs with the remaining costs related to employee severance and benefit costs, and advisory fees. The majority of these restructuring and related charges will result in non-cash charges related to asset disposal costs with the remainder resulting in future cash expenditures. The Company expects that the charges will be incurred primarily in the third quarter of 2024 and that these charges will be substantially completed by the end of the fourth quarter of 2024. These restructuring costs will be excluded from Adjusted EBITDA, which is consistent with the Company's past presentation.
The Company expects the restructuring plan and related actions to improve its annualized Adjusted EBITDA by approximately $20 million by the end of 2025. The improvement will primarily be related to headcount reduction savings, operational efficiencies, and commercial strategy enhancements.