Lyft Inc. said on Wednesday it plans to lay off 982 employees, or 17% of the company's workforce, and implement pay cuts due to economic challenges caused by the coronavirus pandemic.

The company's shares (LYFT) were up 4%.

The ride-hailing business has suffered a near-total collapse as large parts of the United States remain shut to combat the spread of the virus.

Rival Uber Technologies Inc. is also discussing plans to cut around 20% of its staff following the virus outbreak, The Information reported on Tuesday.

Lyft said it will cut base salaries by about 30% for top executives, 20% for vice presidents and 10% for the rest, for a 12-week period beginning in May, in addition to furloughing 288 employees.

The company said it estimates to incur about $28 million to $36 million of restructuring charges, primarily related to the layoffs, according to a regulatory filing.

Lyft directors have voluntarily agreed to forego 30% of their cash compensation for the second quarter of 2020, the company said.