Autonomous supply automobile maker Nuro is shedding about 20% of its workforce after admitting that speedy hiring prior to now yr was a mistake, the corporate’s co-founders wrote in an e mail to staff on Friday.
“Shedding crew members is at all times the final resort, however sadly it was wanted after different choices had been exhausted,” the e-mail stated.
The Silicon Valley-based startup, whose traders embody Tiger World Administration, Alphabet Inc’s Google, and Softbank Group Corp, had raised $600 million final yr at a valuation of $8.6 billion.
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Nuro’s founders, Dave Ferguson and Jiajun Zhu, each labored on Google’s self-driving automotive venture, later spun out as Waymo, earlier than launching Nuro.
They stated Nuro grew quickly prior to now yr helped by an considerable provide of capital, however 2022 introduced a lot of financial challenges, together with an impending U.S. recession and power crises, forcing the corporate to chop prices.
“We doubled the scale of our crew in lower than two years and considerably elevated our working bills, assuming the funding atmosphere would stay robust,” Ferguson and Zhu stated. “We made this name and take full duty for in the present day’s circumstances,” they wrote. The layoffs will have an effect on about 300 staff; impacted staff will likely be supplied three months of severance pay and different advantages, in response to the e-mail.
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