Motional, an autonomous vehicle developer, is set to lay off around 5% of its staff (less than 70 employees) in non-technical roles, affecting mainly administrative roles and positions in Boston where its autonomous vehicle testing takes place.

Motional intends to redirect resources towards areas that will contribute directly to its long-term commercial success.

Despite the layoffs, Motional still hires the required staff to develop technology and achieve commercial objectives. It is also exploring outside funding deals, and its current financial resources are reportedly sufficient to sustain operations until the end of Q1 2024.

Analyst QuickTake: Motional recently confirmed it will be working on a next-generation vehicle with partner Kia and developing an autonomous Hyundai Ioniq 5 robotaxi for launch in 2024. However, the funding situation for the company is uncertain as Aptiv decided to cut stake and discontinue future funding in January 2024, leaving Hyundai as the primary backer unless Motional attracts additional investors.