Tier Mobility laying off 7% of its workforce

San Francisco: German-based micromobility company Tier Mobility announced Thursday that it will lay off 7% of its workforce during a restructuring. TechCrunch laid off 180 employees in August of last year, citing a poor funding environment and uncertain economic conditions, and now says it will cut about 80. .

The micromobility operator will also reduce the size of the US-based bike-sharing system company Spin by about 20 people. Tier’s CEO and co-founder Lawrence Leuschner said, “Layoffs are a central pillar of the company’s overall strategy, from an all-out growth mode to a profitability first mindset.”

The company also said that restructuring would result in the closure of “a small number of cities that do not see a profitable path” due to factors such as unfavorable regulatory approaches. According to reports, Tier originally bought Spin from Ford in March 2022, giving the company broad access to the US, but laid off nearly 80 Spin employees and left Seattle and Canada seven months later. The company laid off an additional 30 Spin employees as it decided to leave 10 more U.S. cities in December. Tier is also shutting down several side projects, including its own vehicle design program and Tier Energy Network. Meanwhile, the company will discontinue its monthly scooter subscription service, MyTier, the report said.