San Francisco, Nov 19 (SocialNews.XYZ) Nuro, a US-based autonomous vehicle delivery startup has laid off about 300 people, or 20 per cent of its workforce, in an effort to preserve cash amid a stormy economic outlook.
According to TechCrunch, the startup, backed by SoftBank, Google and Tiger Global Management, shared the information with employees via an email sent on Friday morning.
Several employees also posted on Twitter and LinkedIn that they had been affected by the layoffs.
In the email, co-founders Jiajun Zhu and Dave Ferguson informed employees that they would receive an update informing them if they were affected by the layoff and with information on the next steps.
"Each and every one of you have made important contributions to this company, and saying goodbye to talented Nurons is not a decision we have taken lightly. For those of you leaving Nuro, we are very sorry for this outcome -- this is not the experience we wanted to create for you. We made this call and take full responsibility for today's circumstances," said the co-founders.
One year ago, Nuro raised $600 million in a funding round led by new investor Tiger Global Management.
The Series D round, which pushed its valuation to about $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 advised by T. Rowe Price Associates, Inc., and Woven Capital, a venture arm of Toyota subsidiary Woven Planet, according to the report.
Macroeconomic conditions in 2022, such as inflation and an impending US recession, prompted the founders to cut costs, including reducing its workforce, in order to extend its capital runway into 2025.
Workers who have been laid off will receive 12 weeks of severance pay, with the possibility of up to 14 weeks for those who have been with the company for more than two years, said the report.
The company will also pay out bonuses to those who qualify and will waive the one-year vesting cliff on equity.