Self-driving technology company Argo AI said Thursday that it has laid off employees in a bid to grow at a more sustainable rate. Although the firm has raised billions in its six-year history, its driverless technology remains early in its development and is unlikely to generate revenue for years.
Argo did not say how many jobs it eliminated and which positions were affected. But since Wednesday, close to a dozen employees announced on LinkedIn that they had been laid off from positions in Pittsburgh, Seattle and northern California. Some described their termination as part of a string of layoffs at the Pittsburgh-based company.
“This morning a large portion of my team and I were a part of a mass #layoff at Argo,” Elijah Alcala wrote Wednesday. He had worked since February as a technical recruiter at Argo and, like many of his former colleagues, shared his intention to find a new job.
The LinkedIn posts show that the laid-off workers include recruiters like Alcala as well as technical sourcers. Both roles are responsible for scouting and vetting job candidates. Their departure raises questions about Argo’s hiring plans.
But in a statement Thursday, the company said, “with incredible growth and progress made in our mission to deploy driverless vehicles, we are making prudent adjustments to our business plan to best continue on a path for success.”
Since its founding in 2016, Argo has hired more than 1,700 employees. The company had been valued at $7.5 billion in 2020. Together, Ford Motor Co. and Volkswagen AG have invested $3.6 billion in the venture. The auto companies have partnered with Argo on various projects, including collaborations with Lyft and Walmart Inc. in Miami and Austin.
Last summer, Argo planned a round of private fundraising, and it had ambitions of going public as soon as this year.
To some, driverless technology, such as Argo's, presents the possibility of transforming the Pittsburgh region into a hub for the autonomous mobility sector. The industry is projected to grow to a $1 trillion market globally in the next five years, according to a report that local economic development groups published last year.
Business leaders view that prospect as key to the region’s growth because it promises to stimulate auto-related manufacturing that could create jobs locally while also attracting more tech and professional service workers to the area. But the widespread deployment of self-driving cars is years away, and Pittsburgh faces competition from other autonomous tech centers such as Detroit, Boston and the San Francisco Bay Area.
Still, recruiting coordinator Kelly Grago wanted to be part of the effort in Pittsburgh. She was laid off from Argo Wednesday, according to a statement she posted on LinkedIn.
“A few months ago I decided to take a risk and leave my steady corporate job to work for an exciting tech start-up that's leading the way in autonomous vehicles,” she wrote.
“Sadly, today I was one of many who were affected by Argo AI's #layoffs. I'm beyond grateful to have had the opportunity to work at such a great company, with such great people, even if it was for such a short time.”
