Despite strong returns in recent months, Allbirds is setting part of its “Flock” free.
“We have thoughtfully evaluated roles and processes in each department, and in each market, to ensure our operating structure is set up for the next phase of growth,” a spokesperson told SFGATE. “In this process, we looked for ways to streamline workflows, reduce duplicative efforts, and put past learnings and operational insights into practice.”
The company has seen its stock drop 70% year-to-date.
Still, the staff cut comes in stark contrast to the company’s robust last two quarters.
- In February, Allbirds reported a record $97.2 million in revenue for Q4 2021 and a 27% year-over-year increase in full-year revenue.
- In May, it reported $62.8 million in Q1 2022 revenue — a 26% year-over-year increase and a 49% increase from Q1 2020.
Flock Flying Away
In context, Allbirds’ cuts were not incredibly drastic.
As of December 2021, the company employed 710 people — meaning this week’s layoffs accounted for only about 3% of its workforce.
The company is providing severance for the departed employees, though it would not comment on the specifics.
“The decision to say goodbye to members of our Flock is not one we made lightly, and we are supporting impacted team members to give them a soft landing,” the spokesperson said.