Pony.ai, a China and US-based self-driving vehicle technology company, is reportedly restructuring its internal operations which has led to layoffs of employees attached to its infrastructure and data and mapping departments in China. 

Reports also note the departure of senior personnel such as Kelvin Chan, the head of an R&D center in California under the infrastructure and data department, and Feng Yi, the mapping division head based in the US.

In an internal letter to the staff, Pony.ai’s CEO has noted that the company is looking to separate its US and China business units in the future–which worked together closely in the past. Pony.ai also noted that the financial situation of the company is stable, and its operations are running as usual.

Analyst QuickTake: The downsizing of Pony.ai’s business might have been fueled by the revoking of the testing license in California by the California Department of Motor Vehicles in May, following a temporary suspension in November 2021 due to a reported collision. Furthermore, its rival Argo.AI closed down its operations earlier in October and Aurora Innovation is also reportedly considering strategic actions , including the sale of the company, amid worsening market conditions. Intel’s autonomous tech development unit Mobileye also went public last month but at one-third of the valuation initially targeted. These recent developments suggest that autonomous vehicles will take a while to hit their stride.