Bird’s second-quarter earnings in 2023 showed a 19% year-over-year decline in average rides per vehicle per day.
Shared micromobility company Bird is downsizing again. The details were included in an email sent to the entire company by interim CEO Michael Washinushi. He acknowledged, “Sadly, today we need to reduce our workforce to achieve our broader goals and to ensure that the entire organization can sustain itself and continue its mission.” Is.” Bird’s interim CEO said the spin acquisition process resulted in redundancies in roles and scope. He explained that the need to create the most efficient integrated team led to some staff reductions.
Following Washinushi’s email, all affected employees received an invitation to meet with a senior leader in their department. Employees were also invited to an all-hands town hall meeting to talk about the layoffs and figure out how the spin integration would work.
Bird’s continued struggle for profitability after acquiring the spin
Bird’s decision to downsize follows its delisting from the New York Stock Exchange last week. Since going public through a special purpose acquisition merger (SPAC) In November 2021, Bird has struggled to remain profitable. In November 2022, the company issued a warning that it would not have enough funds to continue its operations.
To address its challenges, Bird plans to cut its workforce by a massive 23% in 2022. It discontinued its retail scooter product and exited unprofitable markets in the United States, Germany, Sweden and Norway. Additionally, the founder, Travis VanderZanden, stepped down as CEO and handed over the reins to Shane Torchiana. Torchiana immediately initiated aggressive cost-cutting strategies and encouraged fleet managers to rebalance more efficiently.
Despite these efforts, the company failed to achieve the desired results. Bird’s second-quarter earnings in 2023 showed a 19% year-over-year decline in average rides per vehicle per day. Acquiring a spin could be a last-ditch effort to keep the company afloat.
Technical layoffs continue globally
Bird is not alone in her struggles. Many tech companies in the IT and technology sector are continuing to cut their workforce to deal with the harsh macroeconomic realities. latest reports This year, more than 1,043 tech companies have laid off about 239,603 employees.
Recently, US-based software company Qualtrics cut about 780 jobs, which is about 14 percent of its workforce. Similarly, online travel and fintech company Hopper has also cut around 250 members of its staff. On Tuesday it became known that there was also meta Plan To lay off employees under its Reality Labs division.
An experienced writer with practical experience in the fintech industry. When he is not writing, he spends his time reading, researching, or teaching.
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