Humane Lays Off 4 Percent of Employees Before Releasing Its AI Pin
Alex Heath, reporting for The Verge:
Humane laid off 4 percent of employees this week in a move that
was described as a cost cutting measure to those who were
impacted, according to sources familiar with the matter. Employees
were recently told by leadership that budgets would be lowered
this year, said one of the people, who requested anonymity to
speak without the company’s permission.
The cuts, which numbered 10 people, come ahead of the
five-year-old startup shipping its first device: a $699,
screenless, AI-powered pin that is pitched as a smartphone
replacement.
In a text message, Bongiorno told me that the cuts were “not
communicated as a layoff” to those who were impacted, despite
sources telling me that they were — both verbally and in writing.
“It goes without saying that, like every company, we have a
responsibility to remain prudent and proactive, ensuring we have
the right roles, right people, and the right structure at every
juncture,” she said.
Layoffs are never good — and layoffs before shipping the company’s first product are a particularly bad look — but 10/400 employees really does sound more like belt-tightening. But I do not think their AI Pin preorder numbers have set the world afire, nor do I think the company’s investors are interested in funding them further. (Sam Altman, Humane’s largest shareholder, is reportedly working with Jony Ive and LoveFrom on “AI hardware”. To me, that’s far more of a warning sign about Humane than their laying off 10 employees.)
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Alex Heath, reporting for The Verge:
Humane laid off 4 percent of employees this week in a move that
was described as a cost cutting measure to those who were
impacted, according to sources familiar with the matter. Employees
were recently told by leadership that budgets would be lowered
this year, said one of the people, who requested anonymity to
speak without the company’s permission.
The cuts, which numbered 10 people, come ahead of the
five-year-old startup shipping its first device: a $699,
screenless, AI-powered pin that is pitched as a smartphone
replacement.
In a text message, Bongiorno told me that the cuts were “not
communicated as a layoff” to those who were impacted, despite
sources telling me that they were — both verbally and in writing.
“It goes without saying that, like every company, we have a
responsibility to remain prudent and proactive, ensuring we have
the right roles, right people, and the right structure at every
juncture,” she said.
Layoffs are never good — and layoffs before shipping the company’s first product are a particularly bad look — but 10/400 employees really does sound more like belt-tightening. But I do not think their AI Pin preorder numbers have set the world afire, nor do I think the company’s investors are interested in funding them further. (Sam Altman, Humane’s largest shareholder, is reportedly working with Jony Ive and LoveFrom on “AI hardware”. To me, that’s far more of a warning sign about Humane than their laying off 10 employees.)