Autonomous delivery startup Nuro is cutting 20% ​​of its workforce

Nuro, the autonomous vehicle delivery startup backed by Softbank, Google and Tiger Global Managementis laying off about 300 people, or 20 percent of its workforce, in an effort to conserve cash amid a tumultuous economic outlook, according to an email sent to employees this morning.

Several Nuro employees posted on Twitter and LinkedIn this morning that they were affected by the layoffs.

In the email reviewed by TechCrunch, co-founders Jiajun Zhu and Dave Ferguson informed employees that they will receive an update later this morning to let them know if they are affected by this layoff and with information on next steps.

The co-founders said they took responsibility for the layoffs, which resulted from excessive hiring in 2021 that played into uncertain economic issues in 2022.

Each and every one of you has made important contributions to this company and saying goodbye to the talented Nurons is not a decision we have taken lightly. For those of you leaving Nuro, we are very sorry for this outcome – this is not the experience we wanted to create for you. We have made this appeal and take full responsibility for today’s circumstances.

Ferguson and Zhu wrote that in 2021 it was “the strongest fundraising environment in history.” “We saw an abundant supply of capital for deep technology companies, and almost all companies were aggressively hiring and expanding,” they wrote, adding that “In this environment, we decided it made sense to invest heavily across the board and grow our team quickly.”

This led the company to double the size of its team in less than two years and significantly increased operating expenses based on the assumption that the funding environment would remain stable. “This was a mistake,” they wrote.

Macroeconomic conditions in 2022, which include inflation and a looming U.S. recession, have prompted the founders to cut costs, including workforce cuts, in an effort to expand their capital pipeline through 2025. The company said

Nuro still has more than $1 billion on its balance sheet, the pair wrote.

Laid-off workers are offered 12 weeks of pay and up to 14 weeks for those who have been with the company for more than two years. The company will also pay bonuses to those who qualify and waive the one-year equity vesting scale. Nuro will subsidize 100% of COBRA health care premiums (including families) through March 31, 2023 will provide career transition support, and visa holders will also receive some notice period to facilitate this transition and, if applicable, travel assistance, the email said.

Although the company has made progress and operates in Houston, Palo Alto and Mountain View, California, it also withdrawn operations in at least one area. The company closed its Phoenix facility this summer as it shifted its business strategy away from the desert metropolis to the San Francisco Bay Area and Houston.

The story unfolds.

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