Waymo, the self-driving tech development unit of Google’s parent company Alphabet, has announced layoffs affecting 137 employees in its second round of layoffs following the first Alphabet-wide layoffs announced in January. When combined with the initial cuts, the company has now laid off 209 staff members (8% of its workforce) so far this year, mostly affecting engineering roles.
The company notes the layoffs were part of a broader organizational restructuring, which is about minimizing costs while it continues to further develop and deploy its technology. The company is currently in the process of commercializing its robotaxi technology but is reportedly not generating enough revenue to fund its operations. Its autonomous trucking project is reportedly yet to generate revenue (neither confirmed nor denied by the company), but has partnerships with companies such as C.H. Robinson, J.B. Hunt, and Uber Freight for various pilots.
Analyst QuickTake: This latest round of layoffs comes on the heels of Waymo announcing the launch of driverless robotaxi tests in Los Angeles , its second city in California. It already operates commercial robotaxi services in Phoenix, Arizona , and San Francisco, California. The company also boasts of passing a milestone of one million self-driven miles on public roads without a human safety driver; all of which can be pointed out as evidence of the company’s ability to develop, deploy, and commercialize its self-driving technology in the future.
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