Coinspeaker
Bird Downsizes after Acquiring Spin, Aims for Leaner Operation
Shared micromobility company Bird is downsizing again. The details were contained in an email sent to the entire company by interim CEO Michael Washinushi. “Regrettably, today we need to reduce our headcount in order to achieve our broader goals and to ensure that the entire organization can sustain itself and continue its mission,” admitted he. Bird’s interim CEO noted that the Spin acquisition process resulted in redundancies in roles and scope. The need to create the most efficient integrated team possible meant some staff had to be cut off, he explained.
Following Washinushi’s email, all impacted employees received an invitation to meet with a senior leader in their department. Employees also were invited to an all-hands town hall meeting to talk about the layoffs and find out how the Spin integration will work out.
Bird’s Continued Struggle for Profitability after Acquiring Spin
Bird’s decision to downsize follows its delisting from the New York Stock Exchange last week. Since going public via a special purpose acquisition merger (SPAC) in November 2021, Bird has struggled to stay profitable. In November 2022, the company issued a warning it might not have enough funds to continue its operations.
To address its challenges, Bird drastically cut its workforce by 23% in 2022. It stopped its retail scooter product and exited unprofitable markets in the United States, Germany, Sweden, and Norway. Further, the founder, Travis VanderZanden, stepped down as CEO, handing over to Shane Torchiana. Torchiana quickly launched aggressive cost-cutting strategies and incentivized 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 reduction in average rides per vehicle daily. Acquiring Spin may very well be the last-ditch effort to keep the company afloat.
Tech Layoffs Continue Globally
Bird isn’t alone in its struggles. Many tech companies in the IT and technology sector continue to reduce their employee numbers to cope with harsh macroeconomic realities. Latestly reports that over 1,043 tech companies have laid off about 239,603 employees this year.
Most recently, US-based software company Qualtrics cut nearly 780 jobs, amounting to about 14 per cent of its workforce. Similarly, online travel and fintech company, Hopper, has also cut about 250 members of its staff. On Tuesday it was revealed that Meta was also planning to lay off workers under its Reality Labs Division.
Bird Downsizes after Acquiring Spin, Aims for Leaner Operation
