Argo AI, the autonomous vehicle technology startup backed by Ford and Volkswagen, has laid off about 150 people and slowed the pace of hiring, making it the latest tech company to reduce its workforce as recession fears grow.
The layoffs account for about 5% of its more than 2,000 global workforce, according to sources familiar with the company's actions. The layoffs were widespread, affecting talent recruiters, digital media and communications employees as well as members of its operations teams, a review of LinkedIn profiles shows.
Argo confirmed it had issued layoffs and said in an emailed statement, "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."
One source, who remained anonymous because they are not authorized to speak on behalf of the company, told TechCrunch that Argo had hired too quickly, overshooting where it should be. The company is still hiring and has dozens of engineering, legal, technical program management and fleet operations positions open.
Argo AI, which is based in Pittsburgh, launched driverless testing operations in May 2022 in Miami and Austin, a marking the company's progress toward commercializing its technology.