Lyft to lay off 683 employees to cut costs

The company, which is due to report third-quarter results on Monday, said the layoffs would not affect its previously published guidance for the period. Revenue is expected to be between $1.04 billion and $1.06 billion, with adjusted core earnings between $55 million and $65 million.

Shares of the San Francisco, Calif.-based company fell 1 percent.

“The announced reduction in force is a proactive step as part of the company’s annual planning,” Lyft said in a statement.

Companies like Lyft and Uber Technologies Inc.that rely on gig workers have recently faced concerns that a Labor Department proposal to limit the use of independent contractors could drive up costs.

But experts say legal challenges and business groups lobbying for change could derail the Biden administration’s efforts.