Rad Energy Bikes is conducting its third spherical of layoffs this yr, citing an effort to scale back prices amid the broader market downturn.
The Seattle-based e-bike firm confirmed the cuts to Startup on Thursday. It didn’t present an up to date headcount, or info on which positions are being affected.
The layoffs come a day after the corporate introduced the launch of its three-wheeled electrical bike.
The startup slashed 100 positions in April, then made one other 63 cuts in July. It has almost 500 staff, in response to LinkedIn.
“Over the previous few months, we’ve been centered on right-sizing our working prices to turn into a self-sustaining enterprise,” the corporate mentioned in a press release. “The financial downturn, inflationary pressures, and softening client spending require us to additional cut back prices, which sadly contains lowering the scale of our group. We’ve got a transparent and actionable path towards monetary stability and can proceed to prioritize initiatives that permit extra folks to expertise the sudden pleasure of e-bikes and to vary their experience for good.”
Many corporations are being suggested to lay off staff in an effort to scale back prices and lengthen money runways. There have been 1000’s of layoffs at tech corporations within the Pacific Northwest over the previous two months.
Rad Energy Bikes has confronted a number of challenges this yr together with a wrongful demise lawsuit; a lawsuit associated to property harm; and the recall of almost 30,000 items because of a security situation.
Mike Radenbaugh, who helped begin the corporate in 2015, stepped down as CEO final month and is now board chairman. He was changed by Phil Molyneux, who was employed as president and chief operations officer earlier this yr.
Rad launched in 2007 and commenced promoting e-bikes on to customers via on-line gross sales in 2015. The corporate raised a complete of $304 million final yr, a part of two separate money infusions to gas its capital-intensive enterprise. It was valued at $1.65 billion in October 2021, in response to PitchBook, making it considered one of a handful of “unicorn” startups within the Seattle area.
Rad buyers embrace Constancy Administration & Analysis Firm; Counterpoint World (Morgan Stanley); Vulcan Capital; Sturdy Capital Companions LP; The Rise Fund (TPG’s multi-sector international influence investing technique); and funds and accounts suggested by T. Rowe Worth Associates. Blue Nile and Zulily co-founders Darrell Cavens and Mark Vadon additionally invested in 2019.