“We need to be a faster, flatter company,” Lyft chief executive David Risher said in an email posted at its website.

“We will significantly reduce the size of the team as part of a restructuring to focus on better meeting the needs of riders and drivers,” he added.

Lyft will notify employees next week as to whether they still have jobs with the San Francisco-based company, which will keep all of its offices closed that day, Risher said.

Lyft plans to use money it saves to keep prices competitive, improve pick-up times, and give drivers better earnings, according to the chief executive.

Lyft is Uber’s rival in North America.

Both companies were recovering from a ridership drop during the pandemic when a downturn in the broader economy forced painful belt tightening at internet firms.

Lyft already had a round of major layoffs late last year.