SF-based Lyft is going through a restructuring, and making some changes in its bike and scooter division to become more profitable, which includes laying off 1% of its staff.

In a Wednesday filing with the Securities and Exchange Commission, Lyft announced plans to restructure and lay off some staff, stating that these changes would mean the company would incur $34 million to $46 million in related costs in the the third quarter of this year. The majority of those costs, $32 million to $42 million, are expected to come from "asset disposal."

The company has plans to refocus its bikes and scooters program, rebranding it as Lyft Urban Solutions, and it will be doing away with all dockless bikes and scooters.

As Fast Company notes, Lyft had been considering selling off its bike and scooter division last year, but company leadership appears to believe that there is still value there.

"One thing has become abundantly clear: Bikes and scooters are core to our purpose and make our company stronger," writes CEO David Risher in a blog post today. "We have created best-in-class products, including an e-bike that’s addictively great. And cities in the US and abroad are increasingly embracing micromobility solutions as a part of their basic infrastructure to help ease congestion, combat pollution and climate change, and support their communities in a healthy way."

As part of the restructuring, 1% of staff will be laid off — it sounds like this week or this month. Per Fast Company, Lyft had around 3,000 employees as of 2023, so these layoffs may only effect about 30 people.

Risher says the company will be "right-sizing our cost structure, including streamlining and restructuring the [bikes and scooters] team, spending less on R&D, and focusing on deployment."

And he explains that the restructuring will mean "discontinuing our dockless scooters in Washington, D.C." and they are "exploring alternatives for our dockless bikes and scooters in Denver."

Lyft says in the SEC filing that these changes will boost company profits by around $20 million annually, beginning in 2025.

Risher has been able to make Lyft profitable since taking over as CEO last year, and the company posted its first profitable quarter in the second quarter of 2024. The strategy has included improving rider pricing to make Lyft more competitive with Uber.

The company operates docked e-bike and traditional bicycle networks in more than 50 markets in 16 countries now, including London, Madrid, Barcelona, Montreal, Toronto, Mexico City, São Paulo, and Dubai.

"We are more confident than ever about the promise that bikes and scooters represent," Risher concludes, in his blog post. "With our industry-leading hardware, user-friendly software, and efficient operations, Lyft Urban Solutions is poised to become the most customer-obsessed integrated micromobility offering for cities around the world. As bikes and scooters become an even bigger part of the global transportation landscape, we will supercharge our business, cities, and riders’ journeys."