E-scooter ride-sharing platform Bird has terminated four to five per cent of its employees, according to a report from The Information. The layoffs effected around 40 U.S-based employees out of Bird’s 900-person workforce.

“As we establish local service centers and deeper roots in cities where we provide service, we have shifting geographic workforce needs,” said a Bird spokesperson. “We are expanding our employee bases in locations that match our growing operations around the world, while developing an efficient operating structure at our Santa Monica headquarters. The recent events are a reflection of shifting geographical needs and our annual talent review process.”

The layoffs were a result of Bird’s annual performance reviews, but those fired may still be able to receive an exit package, including severance, health and medical benefits. Meanwhile, the company has announced it still plans to hire more than 100 new employees for additional positions.

Bird’s layoffs come right after ride-hailing app Lyft terminated around 50 employees from its bikes and scooters division. Both companies are using bike and scooter sharing to create a more environmentally sustainable way of travel in both urban and rural areas.

Bird recently announced it was expanding its Bird Platform business opportunity to New Zealand, Canada, and Latin America. By partnering with Bird Platform, local operators can buy Bird vehicles at cost and manage their own fleet of the scooters. In exchange for the equipment and managing software, Bird charges operators a service fee with each scooter ride.