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Autonomous delivery startup Nuro lays off 20% of workforce

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Summary

The startup Nuro is laying off 20% of its workforce in an effort to preserve cash. The co-founders said they take responsibility for the layoffs, which were the result of over-hiring in 2021 smacking into economic headwinds in 2022. Nuro still has more than $1 billion on its balance sheet. Laid-off workers are being offered 12 weeks of severance pay and up to 14 weeks for those who have been with the company more than two years. The company will also pay out bonuses to those who are eligible, and are waiving the one-year vesting cliff on the equity front. Nuro will subsidize 100% of COBRA healthcare premiums (including families) through March 31, 2023, will provide career transition support and visa holders will also receive some notice period to ease this transition and, if applicable, travel assistance.

Q&As

How many employees are being laid off by Nuro?
Nuro is laying off about 300 people, or 20% of its workforce.

What is the reason for the layoffs?
The layoffs are the result of over-hiring in 2021 smacking into economic headwinds in 2022.

How much money does Nuro have on its balance sheet?
Nuro still has more than $1 billion on its balance sheet.

What benefits are laid-off workers being offered?
Laid-off workers are being offered 12 weeks of severance pay and up to 14 weeks for those who have been with the company more than two years. The company will also pay out bonuses to those who are eligible, and are waiving the one-year vesting cliff on the equity front. Nuro will subsidize 100% of COBRA healthcare premiums (including families) through March 31, 2023, will provide career transition support and visa holders will also receive some notice period to ease this transition and, if applicable, travel assistance, the email said.

Where has Nuro closed its operations?
Nuro has closed its Phoenix facility this summer as it shifted its commercial strategy away from the desert metropolis and toward the San Francisco Bay Area and Houston.

AI Comments

👍 Nuro is a cutting-edge company that is changing the way we receive our packages. I love that they are investing heavily in their team and expanding their operations.

👎 I'm sorry to hear that Nuro is laying off 20% of their workforce. I hope that those affected will be able to find new jobs soon.

AI Discussion

Me: Nuro, the autonomous vehicle delivery startup, is laying off about 300 people, or 20% of its workforce.

Friend: Oh wow. That's a lot of people.

Me: Yeah. They're saying that it's because of over-hiring and economic headwinds.

Friend: That's really sad. I wonder how the people who were laid off are doing.

Me: Well, the company is offering them severance pay and bonuses, and they're also subsidizing their healthcare premiums for a year.

Friend: That's good, at least. I'm sure it's still a tough situation for everyone involved, though.

Action items

Stay up to date on the latest news in the autonomous vehicle industry.
Follow Nuro's progress and see if they rebound from this layoff.
Consider investing in autonomous vehicle technology.

Technical terms

Autonomous delivery: A delivery that does not require a human driver.
Nuro: A startup that creates autonomous vehicles for delivery purposes.
SoftBank: A Japanese conglomerate that is an investor in Nuro.
Google: An American tech company that is an investor in Nuro.
Tiger Global Management: An American investment firm that is an investor in Nuro.
Layoffs: The act of reducing the number of employees at a company.
TechCrunch: A website that covers the latest in technology and startup news.
Jiajun Zhu: A co-founder of Nuro.
Dave Ferguson: A co-founder of Nuro.
Series D round: A type of investment round in which a company raises money from investors in exchange for equity.
Baillie Gifford: A Scottish investment management company that is an investor in Nuro.
Fidelity Management & Research Company: An American investment management company that is an investor in Nuro.
Gaorong Capital: A Chinese venture capital firm that is an investor in Nuro.
Kroger: An American grocery store chain that is an investor in Nuro.
SoftBank Vision Fund 1: A venture capital fund that is an investor in Nuro.
T. Rowe Price Associates, Inc.: An American investment management company that is an investor in Nuro.
Woven Capital: The venture capital arm of Toyota that is an investor in Nuro.
Inflation: A general increase in prices and fall in the purchasing value of money.
Recession: A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
COBRA: A law that allows employees to continue their health insurance coverage after they leave their job.