Rad Power Bikes, the Seattle-based e-bike startup that has secured over $300 million in funding, underwent another round of layoffs in July, as reported exclusively by TechCrunch. This marks the fifth round of layoffs for the company since April 2021, when it reduced its workforce by 100 employees.
The recent layoffs at Rad come on the heels of a significant downsizing a year prior, which saw the company exiting the European market and letting go of around 40 employees. Rad had previously gone through two rounds of layoffs in 2022.
The challenges faced by Rad and other e-bike companies, such as the bankruptcy of VanMoof, highlight the complexities of the manufacturing and shipping of electric bicycles. The e-bike industry’s volatility underscores the difficulties that startups encounter when striving to scale rapidly to satisfy investor demands.
Details regarding the number of employees affected by the July layoffs and the specific departments impacted were not disclosed by Rad. However, sources acquainted with the situation disclosed to TechCrunch that the layoffs primarily targeted the company’s product development teams. As per LinkedIn, Rad Power currently employs 394 individuals.
In an emailed statement, a spokesperson for Rad Power acknowledged the recent layoffs, emphasizing the company’s commitment to its long-term sustainability and mission. Despite the challenges posed by rising costs and economic uncertainties, Rad remains dedicated to providing energy-efficient and accessible transportation options. The company expressed its determination to navigate this challenging period with compassion and dedication to its vision.
Moving forward, Rad intends to continue providing support and services to its customers through live phone and chat customer service, along with a network of over 1,200 retail and service partners across North America.
Known for their affordable, American-made fat tire e-bikes, Rad Power Bikes has experienced significant changes in leadership following its rapid growth during the pandemic. In 2022, founder Mike Radenbaugh transitioned from CEO to chairman, with Phil Molyneux, former president of Sony Electronics and Dyson America, assuming the role of CEO.
