Seattle-based e-bike manufacturer, Rad Power Bikes, has warned its employees that it may be forced to shut down operations in January if it fails to secure new funding or an acquisition. According to an internal email obtained by TechCrunch, the company’s leadership said it is “still fighting to find ways to continue” and that closure is “not a forgone conclusion.” A previously “very promising” deal to save the company reportedly fell through, leaving its future uncertain.
The company assured staff that it is committed to supporting them and exploring every possible solution to ensure their continued employment. However, Rad Power’s “people team” cautioned that despite ongoing efforts, the financial strain may ultimately force the company to cease operations. The email added that all employees would be affected in the event of a shutdown, and layoffs could begin as early as January 9, 2026.
Once a pandemic-era success story, Rad Power has faced multiple rounds of layoffs as post-pandemic demand for e-bikes declined sharply. The company’s financial woes have been compounded by high tariffs, excess inventory, and a challenging macroeconomic environment. Earlier this year, Rad Power brought in turnaround specialist Kathi Lentzsch as CEO to help navigate its troubles and pursue potential partnerships or investors.
The struggles at Rad Power reflect a broader downturn in the micromobility sector, which has seen several prominent players like VanMoof, Superpedestrian, Cake, and Bird collapse or restructure. Despite industry challenges, Rad Power’s e-bikes remain popular among enthusiasts. For now, the company’s leadership says it remains focused on supporting its workers and customers while exploring last-minute opportunities to keep the brand alive