Rad Power Bikes is conducting its third round of layoffs this year, citing an effort to reduce costs amid the broader market downturn.
The Seattle-based e-bike company confirmed the cuts to GeekWire on Thursday. It did not provide an updated headcount, or information on which positions are being affected.
The layoffs come a day after the company announced the launch of its three-wheeled electric bike.
“Over the last few months, we’ve been focused on right-sizing our operating costs to become a self-sustaining business,” the company said “The economic downturn, inflationary pressures, and softening consumer spending require us to further reduce costs, which unfortunately includes decreasing the size of our team. We have a clear and actionable path toward financial stability and will continue to prioritize initiatives that allow more people to experience the unexpected joy of e-bikes and to change their ride for good.”
Many companies are being advised to lay off employees in an effort to reduce costs and extend cash runways. There have been thousands of layoffs at tech companies in the Pacific Northwest over the past two months.
Mike Radenbaugh, who helped start the company in 2015, stepped down as CEO last month and is now board chairman. He was replaced by Phil Molyneux, who was hired as president and chief operations officer earlier this year.
Rad launched in 2007 and began selling e-bikes directly to consumers through online sales in 2015. The company raised a total of $304 million last year, part of two separate cash infusions to fuel its capital-intensive business. It 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.
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.