TIER Mobility cuts 16% of staff

German-based electric scooter company TIER Mobility achieved an incredible $2 billion valuation in October 2021. However, since then the company has encountered a challenging market.

Investments in start-ups are slowing with a looming recession on the horizon. This is noted as a key factor in Tier Mobility's plan to streamline its product offerings despite making numerous acquisitions over the last year.

As a result of this new approach, the company will be laying off 16% of its workforce, which amounts to 180 people.

The majority of employees impacted have been told in one-to-one meetings that were held on the morning of 23 August.

In a statement on LinkedIn, TIER Mobility CEO Lawrence Leuschner wrote: "As many of you may see in your news feeds shortly, we have made the very difficult decision to reduce the size of the TIER workforce by 180 people - approximately 16%.

"These folks have played a major role in building TIER, so saying goodbye to them is extremely tough."

Leuschner went on to say: "Ultimately, we have to respond to the current economic and funding climate, reducing the number of projects and business lines we are focusing on as a company in order to accelerate our path to profitability.

"My job now is to help the fantastic people leaving us to find a new home.""My job now is to help the fantastic people leaving us to find a new home."

What's next for former employees?

True to his word Leuschner has encouraged his network to look at the Tier alumni page and contact his former employees. Describing the staff leaving the company, he stated they are "great, mission-driven people who want to change the world".

While TIER employees will now have to consider their options, and see if the company's alumni page effectively manages to broaden their network, many have praised the actions of Leuschner. Notably, comments noted that it is rare for ex-employers to make an effort to find their former workers new positions.

The response to Leuschner's comments are particularly interesting because of how the news of other layoffs has been received on LinkedIn.

Braden Wallake, CEO of Hypersocial, recently attracted mass backlash for posting an image of himself visibly upset and discussing his emotions about laying off staff. Comments about this post are angry, accusing Wallake of "virtue signaling", and not helping his former employees properly as he gave no information about them and referred to himself for the majority of the statement.

Although no employer wants to cut its headcount, these posts are examples of the right and wrong way to let go of staff.

Showing empathy and pathways like Leuschner has is undoubtedly the best way to handle the situation as it helps former employees actively.

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