KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Lyft announced plans to sell some of its bike and scooter rental assets and reduce its workforce as part of a restructuring strategy aimed at cutting costs. The ride-sharing company, known for operating Citibike in New York City and similar services in other U.S. cities, has been exploring options for these units since July 2023, following significant interest from potential buyers.
Key Highlights:
Asset Sale and Cost-Cutting Measures: Lyft has not specified which operations it will retain but expects to incur charges between $34 million to $46 million, primarily related to asset disposal. The company will also lay off approximately 1% of its nearly 3,000 employees to streamline operations and reduce expenses.
Projected Cost Savings and Financial Impact: The restructuring is expected to save about $20 million annually in adjusted operating income by the end of next year. These savings will be achieved through a combination of improved operations, better sales strategies, and reduced costs associated with the bike and scooter rental assets.
Challenges and Competitive Landscape: The decision comes after Lyft projected a weaker performance for the September quarter, raising concerns about its ability to compete with Uber Technologies. Since CEO David Risher took over last year, Lyft has implemented various cost-cutting measures, including job cuts and programs to enhance driver earnings and boost ride-share demand.
Lyft's restructuring reflects its efforts to navigate a highly competitive ride-sharing market while focusing on core operations and optimizing its financial performance.
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