SEATTLE (BRAIN) — Rad Power Bikes had another round of layoffs following two previous cuts this year. The direct-to-consumer brand did not say how many employees were let go. In July, Rad Power laid off 63 employees; in April it let go 100.
"We are focused on supporting our team through this, so we won't be providing additional details at this time," a Rad Power spokesperson told BRAIN on Friday afternoon.
A growing number of cycling and tech companies have experienced workforce reductions this year.
"Over the last few months, we've been focused on right-sizing our operating costs to become a self-sustaining business," the Rad Power spokesperson 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."
Last month, CEO Mike Radenbaugh stepped down as CEO and transitioned to chairman of the board to focus on e-bike advocacy and innovation. Phil Molyneux, who joined the brand nine months ago as president, succeeded Radenbaugh to lead day-to-day operations.
Rad Power Bikes has been one of the fastest-growing e-bike brands in the U.S. In October 2021, after it announced the latest $154 million financing round that brought the total of investments to $329 million since its inception, the company claimed it was the world's best-funded e-bike brand in the direct-to-consumer market.
Rad Power Bikes announced in July it opened its sixth showroom store, this one in Salt Lake City, with plans to open stores in Huntington Beach, California, St. Petersburg, Florida, and Brooklyn, New York. The brand says it has more than 550,000 riders on its e-bikes.
However, Rad Power has experienced its share of additional challenges this year in the form of three lawsuits. In August, a wrongful death suit was filed by the parents of a California girl who died while a passenger on a RadRunner e-bike.
In October, State Farm Fire & Casualty and State Farm Mutual Automobile Insurance Company jointly sued on behalf of an insured client for property damage after a Rad Power e-bike caught fire. Rad Power Bikes has denied that one of its e-bikes started the fire.
In April, a Utah woman sued Rad Power Bikes because she said her bike arrived with a loose stem that caused a crash that injured her hands and wrist.
