VC darling Rad Power Bikes hit with another round of layoffs

Rad Power Bikes, the Seattle-based e-bike startup that has raised more than $300 million from investors, went through another round of layoffs in July, TechCrunch has exclusively learned. This is the company’s fifth round since April 2021, when it cut back 100 staffers. 

Rad’s latest layoffs follow a culling a year ago, where the e-bike maker pulled out of Europe and laid off around 40 employees. Rad laid off staff twice in 2022.

The layoffs at the popular e-bike startup come after VanMoof, another ventured-backed e-bike darling, declared bankruptcy last year. The turbulence in the e-bike industry has demonstrated that manufacturing and shipping two-wheelers is a tough business to get right, particularly if a startup is under pressure to scale quickly to provide investors with a return on investment.  

Rad did not share how many staffers it cut in July or which teams were affected. Sources familiar with the layoffs told TechCrunch the cuts mostly hit Rad’s product development teams. According to LinkedIn, Rad Power employs 394 people.

“Earlier this month, Rad Power Bikes made the difficult decision to reduce our team’s size so we can ensure the brand’s longevity, continue on our mission, and serve our rider community,” a spokesperson said in an emailed statement We are doing all we can to approach this very difficult time with compassion and care. We believe in and care deeply about our vision to create a world where transportation is energy-efficient, enjoyable, and accessible to all. We have faced the challenges many businesses have, including rising costs and economic headwinds, and this difficult decision was necessary to ensure the long-term sustainability of Rad’s business.”

A spokesperson for the company said Rad will continue to provide service and support to its customers with daily live phone and chat customer service as well as through more than 1,200 retail and service providers throughout North America. 

Rad Power Bikes, known for their affordable, made-in-the-USA fat tire e-bikes, has gone through some shake ups since its meteoric rise to popularity that was fueled by the COVID-19 pandemic. In 2022, the company’s founder Mike Radenbaugh stepped down as CEO and into the role of chairman. He was replaced by Phil Molyneux, who previously served as president at Sony Electronics and Dyson America.