Rad Power Bikes has notified its staff that the company could close its doors in January unless it secures new investment or is bought out, as revealed in an internal email obtained by TechCrunch.
According to the message sent by Rad Power’s “people team,” the leadership is “actively working to find solutions,” and “shutting down Rad’s business is not yet inevitable.” Employees were informed that there had been a “highly encouraging” opportunity to save the company that “seemed likely to succeed,” but the deal—details of which were not disclosed—ultimately “fell through.”
“Rad’s greatest asset is its people, and the company is committed to supporting every employee as much as possible. The executive team remains optimistic that a workable path forward will be found, allowing Rad’s staff to keep their jobs for the foreseeable future. Still, to be completely open, despite everyone’s efforts, there is a chance this won’t be possible, and Rad may have to shut down,” the email stated. GeekWire was the first to share details from the email.
Based in Seattle, Rad Power has experienced several rounds of layoffs in recent years following the pandemic. While the early days of the pandemic brought a surge in business for micromobility companies like Rad Power, a “sharp decline in consumer demand” left the company with surplus stock, according to the email seen by TechCrunch. “Rad is still grappling with major financial hurdles, including tariffs and broader economic conditions.”
“Currently, Rad’s management is prioritizing employee support, serving our Rad Riders, and doing everything possible to secure the company’s future,” a company spokesperson commented.
Rad Power is not alone in facing difficulties within the e-bike and micromobility sector. Several other companies, such as Cake, VanMoof, Superpedestrian, and Bird, have either shut down or restructured in recent years.
Even with the challenges in the industry, Rad Power was still regarded as producing some of the most attractive e-bikes available. However, mounting financial strain led to a change in CEO earlier this year. The company appointed Kathi Lentzsch, an executive with extensive experience in reviving struggling businesses.
Lentzsch and the rest of Rad Power’s leadership have spent recent months seeking “strategic alliances with other firms that might acquire [Rad Power] or provide funding to help the company continue,” according to the email.
Last week, the company issued a Worker Adjustment and Retraining Notification to employees at its Seattle headquarters, informing them that the 64 staff members there could be laid off as early as January 9. However, the email clarified that this is not a targeted layoff—Seattle is simply the only Rad Power location with enough employees to require this formal notice.
“Should the company be compelled to close, Rad would have to end operations on January 9, 2026, or within two weeks after that date,” the email stated. “If this occurs, Rad anticipates that the shutdown will impact all sites and departments, will be permanent, and all staff will be let go effective January 9, 2026.”
