SAN FRANCISCO — Lyft plans to announce a corporate restructuring on Wednesday that will result in job cuts, according to two people with knowledge of the plans, as the ride-hailing company grapples with questions about whether it can make money.
The scope of the layoffs was unclear. Lyft plans to inform employees on Wednesday, said the people, who spoke on the condition of anonymity because the details are confidential.
A Lyft spokeswoman declined to comment.
Lyft is part of a group of once highflying tech start-ups that held disappointing initial public offerings last year and are now dealing with questions about whether they can turn a profit. Last year, Lyft’s chief rival, Uber, laid off more than 1,000 employees in several rounds of cuts.
Other tech start-ups that were fueled by private money and that grew rapidly have also retrenched recently. WeWork, the office rental company, scuttled its plans to go public last year and has since cut 2,400 jobs. In India, Oyo, a highly valued hospitality company, has started laying off more than 2,000 workers.
Lyft has faced investor doubts for months. After the company went public last March, its stock tumbled below its offering price on the second day of trading and has yet to recover.
Logan Green, Lyft’s chief executive, said during a call with investors in October that the company was making progress on its plans to become profitable. If it excluded some costs, the ride-hailing service would be profitable by late 2021, a year ahead of schedule, he said.
This is a developing story. Check back for updates.