Autonomous delivery startup Nuro lays off 20% of workforce

According to an email sent to employees this morning, the company is laying off about 300 people, or 20% of its workforce, in order to preserve cash.

Several Nuro employees posted on social media that they had lost their jobs.

Employees of the company were told in an email that they would receive an update later today letting them know if they are affected by the layoffs.

The co-founders said they took responsibility for the layoffs, which were caused by over-hiring in 2021.

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.

Ferguson and Zhu wrote that it was the strongest environment in the history of raising money. In that environment, it made sense to invest heavily across the board and grow our team rapidly.

One year ago, Nuro raised $600 million in a round of financing. The Series D round, which pushed its valuation to about $8.6 billion, attracted high-profile investors including Baillie Gifford, Fidelity Management & Research Company, SoftBank Vision Fund 1, funds and accounts advised by T. Rowe.

The company doubled the size of its team in less than two years and increased its operating expenses based on an assumption that the funding environment would remain robust.

Inflation and an impending U.S. recession prompted the founders to cut costs in order to extend its capital runway.

Nuro has more than one billion dollars on its balance sheet.

If you have been with the company more than two years, you can get up to 14 weeks of paid leave. The company will give out bonuses to those who are eligible and waive the one year cliff on the equity front. The email said that Nuro will provide career transition support and visa holders will also receive some notice period to ease the transition if applicable.

The company has made progress and is operating in Houston, Palo Alto, and Mountain View, but it has pulled back operations in at least one area. The company moved its commercial strategy away from the desert metropolis of Phoenix and towards the San Francisco Bay Area and Houston.