Robot delivery startup Nuro lays off 20 percent of its employees

According to the founders, the company has grown too quickly over the past year thanks to an abundance of capital and a growing sense of competition. But Nuro has since faced economic headwinds that are testing the entire tech industry, and the company could no longer handle the size of its workforce. The layoffs were the latest bad news to hit the AV industry, which has just seen one of its more prominent names, Argo AI, shut down in recent weeks.

“Firing team members is always the last resort, but unfortunately it was necessary after other options had been exhausted.”

“Firing team members is always the last resort, but unfortunately it was necessary after exhausting other options,” co-founders Dave Ferguson and Jiajun Zhu wrote. “This result is our responsibility; we doubled the size of our team in less than two years and significantly increased our operating expenses, assuming the financing environment remained strong. This was a mistake.”

Nuro said laid-off employees would receive severance pay that includes 12 weeks of pay (or up to 14 weeks for employees with two or more years of service) and additional benefits. It also praised recent partnerships, such as the deal with Uber Eats, as signs that the company remains strong. And the company still has “more than a billion dollars” on its balance sheet, the founders wrote.

“The two of us have been in this industry for about two decades now and we are more convinced than ever that Nuro is on track to commercialize autonomous vehicles at scale,” Ferguson and Zhu wrote. “Despite the macroeconomic headwinds, Nuro has achieved the key milestones we planned for this year and our pace of progress is accelerating.”

Frank Broholm had acquired considerable experience in writing and editing publications before recruited by The Media Today Chronicle News portal as Editorial Manager. His key task is to conduct effective business reviews based on the most recent business…