Nuro, an autonomous vehicle delivery startup backed by SoftBank, Google and Tiger Global Management, on Saturday (11/19) announced the Termination of Employment (PHK) for 300 people, or 20 percent of its workforce.
In an email received by the laid-off employees, the startup said that the downsizing was done in an effort to save on the company’s operational costs amid the poor economic prospects.
Several Nuro employees also posted on Twitter and LinkedIn that they had been affected by the layoffs.
Meanwhile, the startup founders, namely Jiajun Zhu and Dave Ferguson, will be responsible for the layoffs.
“We apologize to the employees affected by the layoffs. This is a difficult decision for companies to make,” the two startup founders said in an email.
Quoted from Techcrunch, Sunday (20/11/2022) Nuro raised $600 million exactly a year ago in a fundraising round led by new investor Tiger Global Management.
The Series D round, which pushed its valuation to around $8.6 billion, attracted high-profile investors such as Baillie Gifford, Fidelity Management & Research Company, Google, China-based venture firm Gaorong Capital, grocery retailer Kroger, SoftBank Vision Fund 1, funds and accounts suggested by T. Rowe Price Associates, Inc. and Woven Capital, a subsidiary of Toyota’s Woven Planet.
That led the company to double the size of its team in less than two years and significantly increase operating costs under the assumption that the funding environment would remain strong.
However, uncertain economic conditions this year, including inflation and recession, have prompted founders to cut costs, including slashing their workforce, in a bid to extend capital through 2025.
Meanwhile, workers affected by layoffs will receive compensation in the form of 12 weeks of severance pay, while employees who have worked for more than two years will receive up to 14 weeks of severance pay.
Then, the company will also pay bonuses to those who meet the requirements. In addition, Nuro will subsidize 100 percent of health care premiums until March next year.
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