Ride-hailing company Lyft is set to undergo another round of layoffs that could see over 1,200 jobs cut, per the Wall Street Journal, citing people familiar with the matter.

According to the insiders, this restructuring could affect more than 30% of Lyft's 4,000 employees and is the first major move by new Chief Executive Officer David Risher, who took over from co-founders Logan Green and John Zimmer, who are stepping back from daily operations after more than a decade with the company.

This move comes as the company looks to reduce costs, amidst stiff competition from bigger rival Uber Technologies Inc, and cope with a challenging economy post-pandemic. It also comes only five months after the company laid off about 13% (683 employees) of its then workforce in November 2022 citing similar reasons.

According to the latest financial results, Lyft's U.S.-centric focus has left it lagging behind its rival Uber, whose wider reach and diverse operations have given it a competitive advantage. As a result, Lyft's stock has seen a decline of approximately 11% this year, while Uber's stock has enjoyed a gain of 27.5%, as of the close of trading last Thursday.