Nuro, a start-up focused on developing autonomous driving delivery vans, is facing financial difficulties once again and has announced plans to lay off 30% of its workforce. The company is also planning on shortening or cancelling several projects and reorganizing partnerships with other companies. According to a blog post, the reason behind the layoffs and restructuring are due to investors’ reluctance to invest and the looming recession in the US economy. Nuro aims to increase earnings and strengthen its capital by turning away from numerous projects, including the delivery service, and focusing on the development of autonomous driving.
Nuro is known for developing autonomous delivery vans that deliver goods automatically and was the first company to receive a license for this in California back in 2020. However, the delivery service and the development of their next generation of vehicles – called bots – are likely to be eliminated under the restructuring plans. The company will also be reevaluating partnerships, possibly letting them expire. Nuro’s new focus will be entirely on the development of autonomous driving technology.
Around 30% of the workforce, approximately 340 people, will be affected by the layoffs, according to news website Tech Crunch. This is the second time in just over a year that the company has had to let go of employees, with the first round of layoffs occurring in November 2020. The severance packages were offered to those willing to change.
Nuro aims to use the capital it has collected over the next three years at its discretion, which is approximately double the original business plan. However, it may become necessary to raise additional investments after this time. Nuro was founded in 2018 by two former Google employees.