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Lyft LYFT-1.40% is laying off around 1% of its workforce and selling some assets as it restructures its bike and scooter operations.
The ride-sharing company announced Wednesday that the plan is meant to reduce costs as it projects a tough quarter. It is selling between $34 and $46 million of assets related to its bike and scooter rentals, Reuters reported.
Lyft operates Citi Bike in New York City, a popular bike and e-bike rental program. It also has similar services throughout the country. The company told Quartz there will be no changes to Citi Bike. The plan is meant to shift Lyft’s focus away from scooters and towards e-bike rentals, the company said.
The planned sale and layoffs, which will affect around 30 employees, should increase income by $20 million, according to Lyft.
Lyft stock was up about 1.45% at $11.52 a share at 10:20 a.m. after the news broke.
The company said these changes will sustain its micromobility business.
“E-bikes in particular are growing so fast globally. It would be insane not to take it on ourselves,” Lyft CEO David Risher told TechCrunch. “So we said, let’s do this ourselves and bring it to the real standard of excellence that we have for our whole business.”
Risher said the layoffs will move the company away from R&D and help it focus more on sales, operations and deployment.