Artificial Intelligence: After Fintechs And Crypto, Lay Off Contagion Hits Argo AI

Argo AI, which is backed by Ford and Volkswagen, has cut 150 jobs and is taking it slow on fresh hiring.

A report in Tech Crunch says recession fears have led Argo AI, a startup focused on self-driving technology, to lay off as many as 150 people and take it easy on new hiring. Argo AI is backed by Ford (NYSE: F) and Volkswagen (ETR: VOW3).

Tech Crunch received an email from Argo that 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.”

Prudent adjustment

Argo employs about 2,000 people globally, and the lay offs therefore amount to more than 5% of its workforce. A review of LinkedIn profiles by Tech Crunch showed that the layoffs cut across a wide expanse of functions, including in hiring, digital media, communications and even operations.

A source said confidentially that Argo had hired too ambitiously and was now altering course to a more economically justifiable staffing model.

Deja Vu: Coinbase

That reminds one of the message issued last month by Coinbase (NASDAQ: COIN) CEO Brian Armstrong when he laid off 18% of the crypto platform’s employees: “Our team has grown very quickly (>4x in the past 18 months) and our employee costs are too high to effectively manage this uncertain market,” Armstrong wrote.

“The actions we are taking today will allow us to more confidently manage through this period even if it is severely prolonged.”

Related Story: Coinbase To Axe 18% Jobs; Downgraded By JPMorgan

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