Sydney-based e-bike provider Zoomo has today announced it will be cutting its workforce by 8 per cent in a restructure designed to help the company reach profitability next year.
The latest round of redundancies comes seven months after Zoomo announced it was reducing its global workforce by 16 per cent, or around 65 people, in order to navigate a challenging economic climate.
Today’s announcement will see a further 27 roles made redundant.
Zoomo is one of many companies to have announced layoffs this year, joining Airtasker (ASX: ART), Perpetual (ASX: PPT), Fortescue Metals Group (ASX: FMG), Atlassian and Mr Yum – the latter of which laid off 40 employees in late March.
“Zoomo has made the difficult decision to reduce its overall headcount by 8 per cent. The restructure will accelerate our path to company-wide profitability in 2024,” Zoomo said in a statement.
“It primarily affects employees in our corporate head office, as we bring central overheads in line with regional profit.”
Founded in 2017 by Mina Nada and Michael Johnson, Zoomo provides electric bikes for delivery companies like UberEats, Doordash and Domino’s (ASX: DMP). In the span of six years, the group has expanded to operate in 16 cities across Australia, North America and Europe.
The company claims more than 80 per cent of its revenue has been coming from outside of Australia since 2020. Last year the group achieved revenue growth of 112 per cent.
The layoffs come after Zoomo secured $24 million in equity funding earlier this year from existing investors to support continued investments in core technologies while charting a path to profitability.
The raise was led by Grok Ventures and Clean Energy Finance Corporation (CEFC), with participation from other major existing shareholders. Zoomo’s existing backers include AirTree Ventures, Skip Capital, Collaborative Fund, SG Fleet (ASX: SGF) and more.
In November 2021, the company raised $82 million in a Series B, which received an additional $28 million injection three months later.
Over the past 10 months, Zoomo has also partnered with SG Fleet (ASX: SGF) and ad-tech LUMOS to help get more light electric vehicles (EVs) on the road and give gig riders the chance to secure extra income by sporting advertising-enabled smart bags.
“Zoomo has an exciting opportunity to capture the massive market potential of micromobility,” the company said.
“Micromobility offers the best value and environmental impact for urban fleets.
“We continue to support a diverse set of global partners in the provision of hardware, software and servicing solutions, transitioning ever greater portions of fleets to the new form factors.”
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