After previously reducing its global workforce by 16%, Australian e-bike subscription start-up, Zoomo, has been compelled to lay off additional employees only seven months later.

As per media reports, Zoomo announced on Tuesday that it will reduce its overall headcount by 8%, predominantly impacting employees in its corporate head office, as the company aligns central overheads with regional profit.

Established in 2017 with a focus on providing e-bike and e-scooter subscriptions to the grocery and delivery sector, Zoomo has experienced various highs and lows in recent times.

Towards the end of 2021, the company was able to obtain $80 million in capital funding, which was spearheaded by Grok Ventures, the investment firm of Atlassian's founder, Mike Cannon-Brookes. Furthermore, in early 2022, it secured an additional $20 million in funding.

Despite facing significant fluctuations in demand for its e-bikes in the past few years, which were further complicated by supply chain limitations that affected the entire industry, Zoomo has managed to maintain a consistent increase in revenue.

Last November, Zoomo revealed that it would be reducing its global workforce by 16% as a means of safely navigating through the challenging economic landscape. 

According to Mina Nada, the CEO and co-founder of Zoomo, “A year ago, we could not keep up with demand, supply chain was snarled, and capital was abundant.”

“We made decisions in line with our environment. Fast forward to today, and we’re witnessing an increasingly challenging macro-economic environment with increased risks of softened demand and tighter capital. That requires an adjustment in our strategy and cost-base,” added Nada. 

This most recent round of job cuts at Zoomo may have been prompted by several factors, including the company's reliance on revenue generated outside of Australia. Zoomo currently operates in 16 cities across North America, Europe, and Australia.

According to a company statement, Zoomo has secured an additional $24 million in funding from existing investors. This funding is intended to support continued investments in core technologies as the company charts its path to profitability.