Bird lays off hundreds via Zoom call

[benatkin]

Maybe it was heavily rehearsed rather than prerecorded https://twitter.com/coryweinberg/status/1243685748957564928?...

Edit: more: https://twitter.com/coryweinberg/status/1243685675137781762?...

[JansjoFromIkea]

Kinda think that they couldn't put a face to it (specifically the CEO) is way worse than it being (possibly) prerecorded

[dang]

Ok, since the point is disputed, I guess we'll take the prerecorded message out of the title above.

[kevindong]

TechCrunch has a lot more details: https://techcrunch.com/2020/03/27/bird-lays-off-about-30-of-...

> According to a source, Bird’s balance sheet is strong but it needed to reduce burn in order to extend its runway into 2021.

I would not describe a ~9 month runway as "strong".

[paxys]

Well compared to all the companies that claim they cannot last through the lockdown it is.

[freepor]

Well it's strong until it's not. Tons of businesses run on 1-month commercial paper and other stuff that they just plan to roll over and roll over until one day things change and they're completely fucked.

[tsss]

9 months of runway with 0 income is a lot, especially for a company that size.

[edanm]

What would you describe as strong? How much money should companies be hoarding in everyday situations?

(Not to mention that Bird is specifically a startup, which is a company meant to run on investments at this stage.)

[generalpf]

In the email he says “end on 2021” which is 21 months.

[sudoaza]

Market was already on the brink, COVID is going to be the excuse for many companies that are over the head with debt/investors money and still are running losses.

[ornornor]

How is it a company that rents scooter needed 1,387 employees?!?

I’m pretty sure this 30% figure also doesn’t take into account their legions of gig workers recharging the scooters.

[cryptica]

The economy hasn't made sense at all over the past 10 years. Companies have been hiring people just for show. Startups are all about putting up smoke and mirrors to appeal to a bunch of dumb investors. Snap never made a profit in almost a decade yet its market cap is $17 billion. Uber hasn't made a profit in over a decade, market cap is $50 billion.

If you want to understand why things are like this, just look at how the Federal Reserve Bank of the United States is constantly injecting new fiat money into the economy and you will have all the answers.

[akmarinov]

Usually companies just hire on people at that stage to show growth, so that they’ll get more money.

Look at AirBnb - they don’t need thousands to operate their business, but they have them and they continue to hire

[chirau]

Wasn't this company already facing of running out of cash and other financial issues before COVID? I feel that, like many other companies, Bird is gonna use this pandemic as an excuse, when they had other big problems to deal with already

[Rebelgecko]

Isn't that business as usual for Unicorns? Lyft and Uber are the same way

[dillondoyle]

I wondered if the scooter only companies would be better off than ride sharing companies with small scooter revenue.

Anec-data: one of my relatives brokered a post lockdown lease in a large _redacted_ city for one of the two large ride sharing companies. It was for scooter storage.

[nostromo]

There are many major American companies that will be bankrupt in a few months if quarantine continues.

No business projects revenue dropping by almost 100% overnight.

[kevindong]

But many American companies wouldn't have an issue borrowing money (at a reasonable interest rate) to continue operations since they're presumably profitable or at least approach break even.

Has Bird ever been profitable? Even excluding the cost of buying the scooters (e.g. only considering op. ex.)?

[sergiotapia]

So if people are broke, landlords are broke, stores are broke, companies are broke -- just who exactly has the keys to the kingdom here? Who isn't broke? Just banks?

[cycrutchfield]

Especially because a lot of those major American companies have spent the past decade loading up on debt and buying back their shares at historically high prices.

[briffle]

right, why save when you can buy back your stock.

[CPLX]

Sure but the fun part about these insanely well funded moonshot startups that lose money on every transaction is that all these shutdowns improve their gross margins and cashflow positions.

[ramphastidae]

Bird as a company needs to fail as soon as possible. Their scooters have totally overrun my community — they are strewn like trash on every corner.

I sympathize and wish all the best to its employees, however.

[mr_toad]

Unlike cars. You never see cars parked all over the place.

[athenot]

I'm surprized they haven't ended up in dumpsters.

[elwell]

Something similar happened this time of last year: https://techcrunch.com/2019/03/14/bird-lays-off-up-to-5-of-w...

[dalacv]

ah, i’m reminded of an old comedy classic https://m.youtube.com/watch?v=bVBYaTwMtmY

[whateveracct]

Those at the top refuse to stare the consequences of their actions in the eye. A tale as old as time.

If you take on a leadership position, don't be a coward like this. Even if the layoff is due to things beyond your control.

[DeonPenny]

But they pulled all the birds off the street. Why wouldn't you at least put them back everyone around riding lyft bikes. Does this have anything to do with the virus.

[Nextgrid]

One good result of the Coronavirus pandemic is its cleansing effect on unprofitable and unsustainable garbage like this company.

[jamestimmins]

Perhaps, but it will also clear out potentially strong companies that still require substantial investment to get to market simply because they're early in their lifecycle.

You can tell a well made building vs a poorly made building by what's still standing after an earthquake. But no building is built to withstand an atomic blast.

[austincheney]

The same could be said of poor software practices. With so many developers out of work why would any company hire a developer that needs a 3mb JavaScript framework and 1000 NPM packages to write 3 lines of code? The argument against reinventing wheels just because talent is rare just evaporated.

[hc91]

Wow this is bad at a totally different level - it is a new league og messed up. These companies - and more importantly the human garbage at the upper / top level of management of these companies - need to be remembered and when the global situation will return to normal they will need to be given the treatment that they deserve. BEING FIRED VIA A PRE-RECORDED MERSSAGE DURING THE WORST GLOBAL CRISIS SINCE THE SECOND WORLD WAR! - talk about being kicked when you are down, huh?

[aloukissas]

Nobody's surprised