May 16, 2023

More Layoffs In Order, Nuro -US-Based Robot Delivery Startup & Akamai Technologies To Letgo Of Its Staff More Layoffs In Order, Nuro -US-Based Robot Delivery Startup & Akamai Technologies To Letgo Of Its Staff Nuro co-founders Dave Ferguson and Jiajun Zhu announced last week that the company would be reducing the staff by 30% and would also move away from commercial operations towards R&D. Share Nuro, which is a US-based autonomous robot delivery  startup,  has announced that it would be cutting its workforce by 30% or about 340 employees. According to the company, this is part of a restructuring. Last week, the co-founders of the startup also confirmed that they would be moving their focus from commercial operations toward Research and Development (R&D). Related Articles May 16, 2023 At the same time, the company has made modifications in response to tightening in the financial markets generally, and deep tech funding in particular, as well as recent bank failures and an approaching U.S. recession. It is believed that  Nuro  would be stopping the bulk production of R3, which is its third-generation delivery robot, and would instead work on ramping up the commercial operations. Cutting-Off Staff and Nuro’s Blog Post According to the co-founders, Ferguson and Zhu, by making these changes the company would be able to operate more efficiently as these changes would give more revenue to operate for the coming three years. Therefore, there wouldn’t be any need to raise money. In a blog post, Nuro wrote that when they were developing autonomy systems, designing and building custom  automobiles , along with deploying commercial pilots in the past, they will now adopt a more sequential development paradigm. Moreover, the blog post also said that with the help of their new approach, Nuro would get through the economic downturn and would come out stronger than before. Reducing Manufacturing Goals Additionally, the company is reducing its manufacturing goals. To establish a closed-course track and a 125,000-square-foot facility to “build tens of thousands of robots” in collaboration with BYD North America, Nuro had announced intentions to invest around $40 million in both projects in 2021. Ferguson said that while Nuro is still considering using its R3 (Nuro bot), it will postpone mass-producing them. Additionally, it intends to keep using its closed-course test track. This Has Happened Before It must be noted here that this is the second time Nuro is cutting-off its workforce to bit cut costs and also extend the capital runaway. The last time when the company let go of its staff was in November last year. Back then 20%  of employees  were laid off which is equivalent to around 300 people. What Will the Laid-Off Employees Receive from Nuro? According to a report, employees who would be laid off would receive around 12 weeks of severance. Along with this, two more weeks of severance would be given to employees who had served for two or more years of service. Eligible employees would also receive 62.5% of the target bonus. Last, but not the least, the company would also offer healthcare benefits until September 30th and would provide support to employees in holding their visas. Akamai Technologies and Its Crisis On the other hand, Akamai Technologies, a web series company is also going through tough times in terms of reducing workforce. According to reports, around 300 employees, which is equivalent to 3 percent of its worldwide workforce, would be affected. According to the company, this move is a step towards focusing on high-growth sectors and sustaining profitability. What Does Laying-Off of Employees Tell Us? Reducing the workforce tells us one thing that businesses aren’t making enough money which would cover their expenses. At the same time, these companies are worried about a possible economic recession since inflation is rising in most nations. We must take into account that layoffs by large-scale companies is a complicated topic with far-reaching effects. While they could be required for some businesses to stay competitive in a difficult economic situation, it’s critical to take into account the effects it would have on workers, communities, and the overall economy. Therefore, it is the need of the hour to look for alternate solutions rather than laying-off employees. Proofread, Edited & Published By Naveenika Chauhan