Rad Power Bikes, a Seattle-based electric bike startup that has raised more than $300 million from investors, has made another round of staff cuts in July, TechCrunch has learned exclusively. This marks the fifth round of staff reductions since the company cut 100 employees in April 2021.
Rad's latest job cuts follow cuts made a year ago, when the electric bike maker pulled out of Europe and laid off about 40 employees. Rad has laid off staff twice in 2022.
The layoffs at the popular e-bike startup come after another popular venture-capital-backed e-bike company, VanMoof, declared bankruptcy last year. The turmoil in the e-bike industry has proven that manufacturing and shipping two-wheelers is a tough business to succeed in, especially when startups are under pressure to scale quickly to generate a return on their investment for investors.
Rad Power did not disclose how many positions it cut in July or which teams were affected. A source familiar with the layoffs told TechCrunch that the cuts primarily affected Rad Power's product development team. Rad Power has 394 employees, according to LinkedIn.
“Earlier this month, Rad Power Bikes made the difficult decision to reduce the size of our team to ensure the longevity of our brand, continue our mission and serve our rider community,” a spokesperson said in an emailed statement. “We are doing all we can to respond with compassion and care during this extremely challenging time. We believe in and care deeply about our vision of creating a world where transportation is energy efficient, enjoyable and accessible to all. We are facing challenges many companies face, including rising costs and economic headwinds, and this difficult decision was necessary to ensure the long-term sustainability of Rad's business.”
A company spokesman said Rad will continue to provide service and support to customers through more than 1,200 retail stores and service providers across North America, as well as daily phone and chat customer service.
Rad Power Bikes, known for its affordable, American-made, fat-tire electric bikes, has undergone some reinvention since the COVID-19 pandemic caused a surge in popularity. In 2022, the company's founder, Mike Ladenbaugh, stepped down as CEO to become chairman. He was replaced by Phil Molyneux, who served as president of Sony Electronics and Dyson America.