About a year ago, Tier Mobility won the shared micromobility game. Fueled by it $200 million Series D Raising funds in October 2021, the company went for acquisitions The other three are micromobility operators and a Computer Vision StartupIt provides access to e-bikes – a reach that extends beyond Europe and into the US – and is needed to allay politicians’ fears about the safety of the technology.
Today, Tier is in the midst of another round of layoffs. As a result of the previous restructuring, Tier is laying off about 80 employees, some of whom are under the Nextbike umbrella, for redundancy. Tier bought the German bike-share startup November 2021 to expand vehicle offerings beyond e-scooters.
Tier said the layoffs announced Wednesday will affect 7% of its overall workforce headcount. Although some teams will be affected more than others, restructuring affects employees throughout the organization.
The most recent layoffs follow Tier’s decision Let go of 180 employees Back in August, a weak funding environment and uncertain economic conditions were blamed.
The micromobility operator is reducing the size of its Spin staff by about 20 employees. Tier originally bought the Spin from Ford In March 2022, a move that gave the company wider access to the US seven months later, Tear then laid off about 80 spin workers and departs from Seattle and Canada. The company decided to lay off an additional 30 spin workers in December Leaving 10 more US cities.
A Tier spokesperson told TechCrunch that the company has tried to rematch employees from redundant roles with any open roles at Tier and NextBike to retain as many people as possible.
From ‘all-out growth mode’ to ‘profitability first’
How come Tier announces layoffs every few months now from the world’s largest micromobility player? Of course, the macroeconomic climate has affected most tech companies, and Tiercom is the only micromobility operator to announce layoffs (I see you, bird.) It appears that Tier, like other technology companies, is facing tough decisions, expanding for economic growth momentum that may not be realized in the pre-recession of 2023.
Tier CEO and co-founder Lawrence Leuchner said today’s round of layoffs is part of a pivot in the company’s overall strategy, “from an all-out growth mode to a ‘profitability first’ mentality.”
The company said the restructuring will include closing “a small number of cities where we don’t see a path to profitability” due to factors such as an unfavorable regulatory approach. Tier didn’t say which cities it would exit from, but the operator’s future in Paris currently hangs in the balance The City votes on whether or not to renew the permit Tear, lime and dot. However, the city’s strict regulations may make it unprofitable for Tier to stay in Paris at this time.
Tier is also discontinuing its own vehicle design program and several side projects, such as the Tier Energy Network, the company’s plan to install charging stations in retail stores to encourage riders to swap scooter batteries for rewards. On the other hand, the company will discontinue its monthly scooter subscription service, MyTier.
“Downsizing is challenging for any business and especially difficult for a company like Spin, which has already made fundamental changes to the business to ensure its long-term future,” said Philip Reinkens, CEO of Spin. “We are confident that further integration with our parent company, along with cost reduction and revenue enhancement measures, will accelerate the company’s path to profitability.”