Autonomous delivery startup Nuro lays off 30% of workforce, delays production of flagship robot

As part of a plan to extend its capital runway, autonomous delivery robot startup Nuro has revealed its intention to lay off approximately 30 per cent of its workforce, which equates to around 340 employees. The move comes as the company shifts its focus away from commercial operations and towards R&D.

Nuro co-founders Dave Ferguson and Jiajun Zhu explained in a blog post that the company will pause plans to ramp up commercial operations this year and delay volume production of its Nuro bot — the third-generation, or R3, a delivery robot designed to be the flagship of its commercial strategy. By making these changes, Nuro will be able to operate twice as long, giving it enough capital to operate for another three years without raising more money.

This is not the first time that Nuro has laid off workers in a bid to cut costs. Last November, the company laid off around 20 per cent of its workforce in a similar effort to extend its capital runway.

Nuro plans to offer laid-off employees 12 weeks of severance, as well as two additional weeks for those with two or more years of tenure. Eligible employees will also receive 62.5 per cent of their target bonus (prorated for new hires) or payment of spring bonus amounts for employees on a biannual performance bonus. The company has also confirmed that it will offer healthcare coverage until September 30th and provide support to employees holding visas.

Despite the layoffs, Nuro remains optimistic about its future. The company said in a blog post that its new approach will not only help it weather the current economic downturn but also emerge stronger on the other side. By focusing on R&D and delaying commercial operations, Nuro aims to create a more sequential development model that will enable it to bring better products to market in the future.

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