Scooter sharing giant Bird is laying off about 5 percent of its workforce, according to the Information. About 40 employees in the 900-person company were let go for cost reasons.
Bird quickly expanded throughout 2018 and has raised almost $400 million so far. Now the company is scaling back scooter fleets in Los Angeles and other cities. Bird CEO Travis VanderZanden told the Information that the company is now focused more on being fiscally responsible.
According to TechCrunch, the layoffs were part of the company’s annual performance review and those impacted will be offered severance and other benefits.
“As we establish local service centers and deeper roots in cities where we provide service, we have shifting geographic workforce needs,” a Bird spokeswoman said to the Information.
Ride-sharing companies have had scooter and bike companies under their watchful eyes as they look to expand to other transportation divisions. Back in December, Uber was in talks to acquire the company in a multi-billion dollar deal; however, there have been no updates on the plans as Uber announced its goal to IPO this year.
There’s no word on how Bird’s recent layoffs will impact possible deals with ride-sharing companies or any other partnerships.