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The co-founder of footwear retailer Allbirds has stepped down from his role as co-CEO to instead take up the role of chief innovation officer.
Tim Brown, who co-founded the company alongside Joey Zwillinger in 2016, said he will support Zwillinger going forward, as Zwillinger will now act as sole CEO of the company.
According to Drapers, Brown said: “Joey and I, together with the board, made the decision to transition my title from co-founder and co-CEO to co-founder and chief innovation officer. I’m looking forward to supporting Joey as he continues to lead the business as our CEO on a day-to-day basis.
“While my role has changed, one thing hasn’t: my long-term focus and belief in the potential of this brand and business. I know both how far we have come and how much further we can go.”
He added: “From the original Kickstarter campaign to the launch of Allbirds and the world’s most comfortable shoe, to the recent launch of innovations such as the Moonshot project [what Allbirds calls the first zero-carbon shoe, launched in March 2023], we have significant opportunities ahead.
“With a focus on design, innovation and a clear vision for the role that brands will play in a new sustainable economy, we have significant potential through the strategic transformation under way.”
News of the transition comes shortly after the group published its Q1 results earlier this month, which revealed that revenues fell by 13.4% to $54.4m (£44m), though this marked a 9.5% increase against 2021.
In addition, the group reported a net loss of $35.2m (£28.2m), and an adjusted EBITDA loss of $21.7m (£17.4m).
Nonetheless, the group said there was a “significant” improvement in Q1 cash usage, which was down 50.6% compared to the prior year.
It comes as the group said it has continued its cost savings and capital efficiency initiatives that first began in 2022, including a further reduction in global corporate workforce of approximately 9% this month.
According to the group, its cost-reduction plan includes plans to fully transition to a new footwear manufacturing partner by the end of 2023, which will “potentially accelerate cost of revenue, SG&A and cash optimization savings over the next three years”.
The group also said its product and brand initiatives include increasing focus on its core franchises, through a concentration on comfort and quality and better commercialisation of its materials, as well as increased investments in brand marketing.
Meanwhile, its store-based distribution initiatives in the US include optimising its store fleet and selectively expanding its third party wholesale channel. Store optimisation will include slowing the pace of new store openings and investing in corporate and retail store talent and store marketing.
