Nuro, the autonomous delivery robot company, has announced that it will lay off approximately 30% of its workforce, or around 340 employees, as part of a strategy to extend its financing runway. The move is in line with the firm’s shift away from commercial activities and towards research and development.
Co-founders Dave Ferguson and Jiajun Zhu outlined the company’s plans in a blog post, explaining that Nuro will not be ramping up commercial operations this year as previously planned. They also revealed that the firm will delay the volume manufacturing of its Nuro bot, the third-generation delivery robot, known as R3, which was expected to be the centerpiece of its commercial strategy. However, implementing these improvements will allow Nuro to continue running for another three years without having to seek further funding, doubling its current financial runway.
This is not the first time Nuro has laid off employees to save money. The firm also let go of almost 20% of its workforce in November, in a similar effort to extend its financial runway.
Nuro intends to provide severance pay to laid-off employees, with 12 weeks of pay plus two additional weeks for individuals who have served for two or more years. Eligible employees will also receive 62.5% of their target bonus (prorated for new recruits) or payment of spring bonus amounts if they are on a biannual performance bonus. The company has also announced that it will continue to provide healthcare coverage until September 30th and will offer assistance to staff with visas.
Despite the layoffs, Nuro remains optimistic about its future. In the blog post, the company stated that its new approach will not only help it weather the current economic slowdown but will also enable it to emerge stronger on the other side. Nuro aims to focus on research and development and delay commercial operations, constructing a more sequential development approach that will allow it to bring better goods to market in the future.
In conclusion, Nuro’s decision to lay off employees and delay its commercial operations in favor of research and development is part of its plan to extend its financing runway and emerge stronger in the future. The firm’s optimism about its future is reflected in its commitment to providing severance pay and benefits to its laid-off employees.
For the latest news, tech news, breaking news headlines, apps, games, and startups updates check out www.startupinsider.in