Nuro, a US-based startup specializing in autonomous delivery robots, has announced a significant workforce reduction, amounting to 30% of its employees, approximately 340 individuals. This decision comes as part of a strategic restructuring aimed at prolonging the company’s capital runway.
Last week, Nuro’s co-founders, Dave Ferguson and Jiajun Zhu, disclosed plans to downsize the workforce and reallocate resources from commercial operations to research and development efforts, as reported by TechCrunch.
In response to current economic conditions, Nuro has opted to temporarily halt its expansion of commercial activities for the year and postpone the mass production of its third-generation delivery robot, the R3.
According to Ferguson and Zhu, these adjustments will effectively double the company’s operational timeline, providing sufficient capital to sustain operations for an additional three years without the need for further fundraising.
Nuro outlined its revised strategy in a blog post, stating, “While in the past we developed autonomy systems, designed and built custom vehicles, and deployed commercial pilots with partners in parallel, we will now pursue a more sequential development model.” The company expressed optimism that this new approach would not only navigate the current economic downturn but also position Nuro for enhanced resilience and growth in the future.
This marks the second instance of Nuro implementing layoffs to streamline costs and extend its capital runway. In November of the previous year, the company reduced its workforce by approximately 20%, affecting around 300 employees.
Additionally, Nuro has outlined its severance package for affected employees, which includes 12 weeks of severance pay and an additional two weeks for individuals with two or more years of service. Eligible employees will also receive 62.5% of the target bonus, adjusted for new hires, or prorated spring bonus amounts for those entitled to a biannual performance bonus.
Meanwhile, Akamai Technologies, a web services company, is also undergoing layoffs, affecting nearly 3% of its global workforce. This strategic move aligns with Akamai’s focus on high-growth areas and sustained profitability, with an estimated impact on approximately 300 employees, according to reports.
