Rad Power Bikes, Favored by Venture Capital, Faces New Wave of Job Cuts

Seattle’s own Rad Power Bikes, an electric bicycle startup that garnered over $300 million in investment funds, faced yet another workforce reduction in July, as exclusively reported by TechCrunch. This marks the fifth occurrence of job cuts at the company since April 2021, a period during which it initially downsized by 100 employees.

This series of layoffs at Rad comes on the heels of significant downsizing last year, which saw the company exit the European market and dismiss around 40 workers. In 2022, Rad made the decision to reduce its staff twice.

These recent cutbacks at the esteemed e-bike company occur amidst a backdrop of industry volatility, highlighted by the bankruptcy of VanMoof, another venture-backed e-bike innovator, the previous year. The challenging nature of producing and distributing e-bikes, coupled with the pressure to scale operations swiftly for investor returns, has been starkly evident in these turbulent times.

July’s layoffs, including the specific number of staffers let go and the departments impacted, weren’t disclosed by Rad. However, insiders close to the situation revealed to TechCrunch that the reductions were primarily within Rad’s product development sectors. Current LinkedIn data shows Rad Power employs 394 individuals.

“This month, in a challenging yet necessary move, Rad Power Bikes made the tough decision to downsize our team to secure our brand’s future, uphold our mission, and continue supporting our community of riders,” expressed a company representative through an email. “In these trying times, we are committed to handling the situation with as much empathy and sensitivity as possible. Our dedication to fostering a world where transportation is efficient, enjoyable, and accessible for everyone remains unwavering. Like many other businesses, we’ve navigated through obstacles such as escalating costs and a tightening economy, making this tough choice essential for Rad’s enduring stability.”

The company assured that despite the layoffs, customer service will not falter, maintaining its commitment to high-quality support through daily live phone and chat services, alongside over 1,200 retail and service providers across North America.

Rad Power Bikes, celebrated for their economical, US-made fat tire electric bicycles, has experienced some significant transformations following its rapid ascent in the wake of the COVID-19 pandemic. In a notable leadership change in 2022, company founder Mike Radenbaugh transitioned from CEO to chairman, while Phil Molyneux, with former executive roles at Sony Electronics and Dyson America, stepped in as the new CEO.