Lyft’s newly appointed CEO David Risher instructed staff in an email Friday that the corporate is considerably lowering its workforce as a part of a restructuring effort.

Risher stated the restructuring is a part of Lyft’s plan to “higher assembly the wants of riders and drivers.” The corporate confirmed that it has not modified its steering for the primary quarter despite the upcoming layoffs.

What’s much less clear is how this would possibly have an effect on packages exterior of ride-hailing similar to its bike-sharing service.

Lyft doesn’t make use of drivers who use the ride-hailing app to select up and drop off riders. As an alternative, the layoffs will likely be directed on the firm’s greater than 4,000 full-time staff. Staff will study whether or not they have a job or not by way of an electronic mail that will likely be despatched out April 27.

Lyft wouldn’t disclose the quantity of people that will likely be minimize. A WSJ report, citing unnamed sources, stated about 1,200 employees, 30% of its whole workforce, can be affected.

Risher, a former retail government at Amazon, took over the CEO position at Lyft after co-founders Logan Inexperienced and John Zimmer stepped down final month.

Risher defined within the electronic mail that he made the choice to assist the corporate obtain its two core functions.

“Lyft has two functions which might be linked to one another: We assist riders get out and about to allow them to reside their lives collectively, and we offer drivers a option to work that provides them management over their money and time,” he wrote.

The transfer might come as no shock to those that intently observe Lyft and its struggles to maintain apace of rival Uber.

Risher instructed TechCrunch in a late March interview that Lyft might drop its shared rides offering and make different modifications to its enterprise mannequin in a bid to give attention to its core ride-hailing enterprise and grow to be worthwhile.

He listed a lot of different services that would disappear, together with Wait & Save, which permits riders in sure areas to pay a decrease fare in the event that they look ahead to the best-located driver.

“It’s attainable that perhaps we don’t want each of these anymore and that we will focus all our sources on doing a fewer variety of issues higher,” Risher instructed TechCrunch on the time. “Possibly it’s time for us to say the shared rides have been nice for a time, however it’s time to let that go.