Rad Power Bikes is laying off employees for the fourth time since April of last year.
The Seattle-based e-bike company confirmed the latest round of cuts on Wednesday. It did not provide an updated headcount, or information on which positions are being affected.
Rad Power Bikes slashed 100 positions in April 2021, then made another 63 cuts in July, and had its third round of layoffs in December.
The company now has around 400 employees, according to LinkedIn.
“We hoped the changes we implemented last year would put Rad in a better position to withstand the current economic downturn,” the company said in a statement to GeekWire on Wednesday. “However, given current market realities, we are forced to further reduce the size of our team. This unfortunate measure is necessary for Rad to correct course and become a sustainable, enduring business.”
In addition to the workforce reductions, Rad has faced multiple challenges recently including a wrongful death lawsuit, a lawsuit related to property damage, and the recall of nearly 30,000 units due to a safety issue.
Rad launched in 2007 and began selling e-bikes directly to consumers through online sales in 2015. It grew into the leading e-bike seller in North America and raised $304 million in 2021, part of two separate cash infusions to fuel its capital-intensive business.
Rad was valued at $1.65 billion in October 2021, according to PitchBook, making it one of a handful of “unicorn” startups in the Seattle region.
Mike Radenbaugh, who helped start the company in 2015, stepped down as CEO in November and is now board chairman. He was replaced by Phil Molyneux, who was hired as president and chief operations officer earlier this year.
Molyneux sent an email to customers in January, vowing to increase focus on safety, reliability, and customer service, Electrek reported.
Rad investors include Fidelity Management & Research Company; Counterpoint Global (Morgan Stanley); Vulcan Capital; Durable Capital Partners LP; The Rise Fund (TPG’s multi-sector global impact investing strategy); and funds and accounts advised by T. Rowe Price Associates. Blue Nile and Zulily co-founders Darrell Cavens and Mark Vadon also invested in 2019.
Rad announced a battery recycling partnership this week with Redwood Materials, a startup founded by former Tesla CTO JB Straubel.
Many companies have trimmed headcount over the past year in an effort to reduce costs and extend cash runways amid economic uncertainty. Seattle tech companies including Redfin, Amazon, Microsoft, and others have reduced their workforce in recent months.
from GeekWire https://www.geekwire.com/2023/rad-power-bikes-lays-off-employees-for-the-4th-time-in-the-past-year/