The US-American Bike brand Specialised has announced plans to cut eight per cent of jobs worldwide. In the USA alone, 120 employees are to be made redundant. The company also parted ways with its paid influencers. Scott Maguire, CEO of Specialized, explained somewhat vaguely that it was "necessary to adapt to the current environment".
Giant asks for longer payment period
The fact that the bicycle market is under pressure is also demonstrated by a letter from Giant to its suppliers. In the confidential document, the world's largest bicycle manufacturer from Taiwan asks business partners for a longer payment period for outstanding invoices. The reason given for this is a sharp drop in demand for bicycles - particularly in the lower price range. As a result, full warehouses would increasingly cause chaos in the supply chain. Giant does not expect the tense situation with the overfilled warehouses to change in the next six months.
The reports generated selling pressure on the stock market - also for other bicycle companies. Giant Manufacturing Group shares have fallen by over 40 per cent over the course of the year. At its competitor Merida fell by 48 per cent year-on-year and Shimano by more than 30 per cent. Companies such as Zwift, Strava, Peloton, Wahoo and Pearl Izumi have also announced job cuts.
