According to Bloomberg , Argo AI, the self-driving technology company behind Ford and Volkswagen, has laid off about 150 employees, or about 7.5% of its more than 2,000 employees.
However, the company said in a statement that this is an adjustment to its business model after substantial growth. The implication is that more employees were recruited for expansion, but the current environment is not conducive to expansion. Therefore, It’s time to regain control.
Argo AI first received a $1 billion investment from Ford Motor in 2017, and then a $2.6 billion investment from Volkswagen in 2020. The two companies currently each hold a 42% stake in Argo AI.
In addition to developing self-driving-related technology for future use in Ford and Volkswagen vehicles, Argo has also launched its own self-driving taxi service to compete with services like Waymo or GM Cruise.