Scooter Startup Bird Cuts 30% of Staff to Survive Pandemic
Bird lays off 406 employees as the COVID-19 crisis forces the scooter company to pause global operations and reduce its cash burn. The startup joins a growing list of Silicon Valley companies making deep cuts to extend their financial runways.
Bird lays off approximately 30% of its workforce, equating to 406 employees, as the COVID-19 pandemic severely disrupts its global operations. CEO Travis VanderZanden confirms the cuts in an internal memo, stating that the company pauses multiple markets worldwide and drastically reduces spending to navigate the unprecedented crisis.
Despite maintaining a strong balance sheet, the electric scooter startup takes this action to lower its cash burn rate and extend its financial runway into 2021. Affected employees receive four weeks of pay, three months of continued health coverage, and a 12-month window to exercise their stock options as they depart the company.
This downsizing reflects a broader trend across the technology sector as Silicon Valley experiences accelerating layoffs. Bird's main competitor, Lime, also feels the pressure, suspending services last week while seeking a down-round funding that slashes its valuation from $2.4 billion to $400 million and reportedly considering regional staff cuts of its own.