Tier Mobility and Spin, two of the largest e-scooter companies in the U.S., are laying off a combined total of 100 employees.
The cuts come as the scooter industry faces immense pressure to become profitable. Both companies have been burning through cash at a high rate as they expand rapidly into new markets.
Tier, which is based in Germany, is laying off 49 employees, or 10% of its workforce. The company has raised $250 million from investors and is valued at $1 billion.
Spin, which is based in San Francisco, is laying off 51 employees, or 20% of its workforce. The company has raised $180 million from investors and is valued at $500 million.
The layoffs come as the companies grapple with how to become profitable. Both companies are bleeding money as they rapidly expand into new markets.
The scooter industry has come under pressure in recent months as cities crack down on the proliferation of e-scooters on their sidewalks. In addition, the number of people using scooters has decreased in some markets as the novelty has worn off.
To become profitable, the companies will need to find a way to increase revenue and decrease costs. One way to do this is to raise prices, but that risks alienating customers.
The other option is to find new sources of revenue, such as delivering goods or providing advertising space on the scooters. But it’s unclear if those options will be enough to offset the costs of operating a scooter fleet.
The layoffs are a sign that the companies are feeling the pressure to become profitable quickly. It’s a tall order, and it remains to be seen if they can do it.
Tier Mobility and Spin lay off 100 more employees
The electric scooter companies Tier Mobility and Spin have announced they are laying off a combined 100 employees.
The layoffs come as the scooter companies face increasing pressure to become profitable. Both companies have raised millions of dollars from investors, but have yet to turn a profit.
In a statement, Tier Mobility said: “We have made the difficult decision to reduce our workforce by 100 full-time equivalent positions globally, effective immediately.”
Spin said in a statement: “Today we announced layoffs of approximately 100 employees in order to better align our costs with revenue.”
The layoffs come as the companies face several challenges, including regulatory hurdles, competition from other scooter companies, and a decrease in demand for their services.
Both companies said they will continue to operate in their current markets and are looking for ways to reduce costs and become profitable. Tier Mobility and Spin lay off 100 more employees
Tier Mobility and Spin lay off 100 more employees
Tier Mobility and Spin, two of the largest electric scooter companies in the U.S., have announced they are laying off 100 more employees. The move comes as the companies continue to experience declining ridership amid the coronavirus pandemic.
Tier Mobility said in a statement that the layoffs are “a direct result of the significant decrease in ridership due to Covid-19.” The company, which has more than 1,000 employees, said it has eliminated its marketing, product, and business development teams, as well as some positions in operations and customer support.
Spin said in a statement that it is ” facing significant challenges due to the pandemic.” The company, which has more than 500 employees, said it is reducing its workforce by 15%.
Both companies have been hit hard by the pandemic. In March, Tier Mobility temporarily suspended operations in the U.S. and Spin laid off 30% of its staff. Tier Mobility has since resumed operations in some markets, but ridership remains low.
The layoffs come as the electric scooter industry continues to face challenges. In May, Lime laid off 14% of its workforce and Bird laid off 30% of its workforce. And in June, Wheels laid off 120 employees.