Lyft Inc. will shutter its car-rental business and cut about 60 jobs as the ride-hailing giant looks to streamline its operations and trim its budget.

The news, which Lyft confirmed on Wednesday, was previously reported by the Wall Street Journal.

Lyft had said in May that it would slow hiring and trim expenses in parts of the company, which has been especially hard hit by a technology stock rout this year. Its shares have lost more than two-thirds of their value in 2022. 

The stock decline accelerated when the San Francisco-based company indicated it would be ramping up spending on driver incentives to cope with a persistent labor shortage.

Uber Technologies Inc. has fared relatively better, with its shares down 43 per cent this year. Uber Chief Executive Officer Dara Khosrowshahi said last month that the company is “recession resistant” and doesn’t see a need for job cuts.