Rad Power Bikes is laying off 63 employees, citing an effort to be a more “self-sustaining business” amid the broader economic 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, but sent the following statement.
“Over the last few months the global economic outlook has become increasingly uncertain and our operating costs have significantly increased,” the company said. “To weather this challenging time we are shifting our focus to become a self-sustaining business. This has resulted in a team reduction which was something we worked hard to avoid, but was necessary to ensure the long term sustainability of Rad Power Bikes.”
Rad slashed 100 positions in April in what it called a “restructuring” effort at the time. Many startups are being advised to lay off employees in an effort to reduce costs and extend their cash runways.
Rad was founded in 2007 and continues to be led by CEO Mike Radenbaugh, a former director of product development at GolfBoard. The company’s co-founder Ty Collins stepped down last year.
The startup raised a total of $304 million last year, part of two separate cash infusions to fuel its capital-intensive business. The high flying company was valued at around $1.65 billion when it last received capital, making it one of Seattle’s 16 “unicorn” startups at the beginning of the year.
Rad’s 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.