Autonomous delivery robot startup Nuro to lay off 30% of workforce in restructuring effort
- ByStartupStory | May 13, 2023
Nuro, a startup focused on autonomous delivery robots based in the US, is planning to lay off around 340 employees, which accounts for 30% of its workforce, in a bid to restructure and expand its capital runway, the company announced.
TechCrunch reported that Nuro’s co-founders, Dave Ferguson and Jiajun Zhu, announced that the company would prioritize research and development (R&D) and cut staff as part of a restructuring effort. Nuro plans to postpone the production of its third-generation delivery robot, the R3, and suspend commercial operations this year to focus on its new strategy.
Nuro’s co-founders, Ferguson and Zhu, have stated that the company’s shift towards R&D will enable it to double its operating time and continue operating for the next three years without additional capital infusion. “Nuro will now follow a sequential development approach instead of a parallel approach”, as mentioned in the company’s blog post. This decision will allow Nuro to focus more on developing autonomous systems and vehicles.
Nuro’s blog post mentioned that “the new approach towards R&D will not only help the company withstand the current economic downturn but also emerge stronger in the future”.
Nuro has laid off employees for the second time in a bid to increase its capital runway and reduce costs. Last year in November, Nuro had let go of around 20% or 300 workers from its workforce.
Employees who were laid off by Nuro will receive severance pay of 12 weeks, along with an additional two weeks for those who served for two or more years, according to the report. As per the company policy, eligible employees will also receive a prorated target bonus of 62.5% or spring bonus for those who get biannual performance bonuses.
Reports suggest that Akamai Technologies, a web services company, will lay off approximately 300 employees, which is almost 3% of its global workforce. The company is redirecting its focus on high-growth areas and ensuring profitability as a part of its strategy.
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