Before CEO Exit, Allbirds’ Design Mishaps Were Piling Up

Last fall, Allbirds was preparing to launch an updated version of its popular Wool Runner shoe when its product design team realized there was a problem.

A flaw in the design meant Allbirds had to scramble to remove and replace the fabric inside roughly 30,000 pairs of shoes, two people who worked on the launch said. The last-minute snag underlines the quality issues plaguing the onetime direct-to-consumer darling. Those issues have contributed to a sales decline over the past five quarters that has slashed the stock’s value 96% since its late 2021 IPO. In the latest sign of upheaval, Allbirds on Tuesday announced co-founder Joey Zwillinger would step down as CEO this week.