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For Saumya Bhatnagar, being the only woman in a room is far from a novel experience. An engineer by training and currently the co-founder and chief product officer at AI sales rep startup Jeeva, she remembers being the sole girl in her high school's 170-person <a target="_blank" class="" href="https://www.businessinsider.com/5-tips-women-career-coding-twilio-2020-8">coding class</a> — and that none of her male peers would sit next to her."I had to make space for myself, and there were plenty of micro and macro aggressions in the grand scheme of things that I had to talk my way through," she told Business Insider. "At the end of the day, <a target="_blank" class="" href="https://www.businessinsider.com/women-left-out-of-the-ai-investment-boom-risks-bias-2023-10">it's a man's world</a> in the VC, startups, and AI space."Bhatnagar isn't alone in her journey. Although the number of women-founded startups has increased, less than 3% of venture capital funding went to <a target="_blank" class="" href="https://www.businessinsider.com/venture-capital-decline-hurts-female-founders-gender-gap-startup-funding-2023-12">female-only founding teams</a> in 2022, according to PitchBook.A handful of women who are well-known as leaders in the AI space — including "Godmother of AI" <a target="_blank" class="" href="https://www.businessinsider.com/vcs-like-khosla-and-a16z-backing-robotics-that-use-ai-2024-7">Fei Fei Li</a>, Anthropic president and co-founder Daniela Amodei, and OpenAI's former chief technology officer Mira Murati. But others building startups report facing various gender-related obstacles to success, including bias in the fundraising process, limited mentorship opportunities, and difficulty building meaningful business relationships with men.In the AI sector specifically, which has surged in popularity since the release of ChatGPT two years ago, the challenges for female founders are even more pronounced. <a target="_blank" class="" href="https://www.businessinsider.com/meet-18-women-who-made-partner-vc-firms-in-2023-2023-11">AI continues to attract significant VC interest</a>, but women in the space face additional barriers compared to their male counterparts, starting at the education level.While a degree in engineering or computer science isn't a requirement for launching an AI company, it's often a prerequisite for techies building foundational models to tackle complex machine-learning problems. Women accounted for just 22% of AI and computer science PhD programs in the US in 2019, according to a Deloitte study.Women in 2020 made up an estimated 26% of data and AI positions in the workforce, per a World Economic Forum report. And <a target="_blank" href="https://www.uktech.news/diversity/ai-funding-women-founders-20240319">recent data from the UK </a>shows that only about 4% of AI startups in the country have women founders.Although Bhatnagar is among the small group of women in the space with advanced technical chops, she says she still notices the gender imbalance in the AI world — and that it, at times, has led to her feeling impostor syndrome and burnout.Developing relationships with other women working in the AI space has become a vital lifeline, she said. An active member of online and in-person groups, including <a target="_blank" href="https://www.womenandai.com/">Women and AI</a> and <a target="_blank" href="https://thewomenweadmire.com/">Women We Admire</a>, Bhatnagar said that she's made connections that support her in navigating difficult business dynamics, connecting with female investors, and finding solace in shared experiences."Women are not comfortable asking for help, and there's this idea that perfectionism needs to be showcased at all times," she said. "Finding a community of women has helped me take risks and realize that I'm actually doing okay," she said.Vivien Ho, a partner at early-stage fund Pear VC, has watched the meteoric rise of buzzy AI startups during the last two years and noticed that many are run by men, she said. But as a longtime community builder in the Bay Area tech scene, this didn't jive with what she was seeing on the ground. There were plenty of women interested in building AI companies, she said. Many just didn't know how to start.This observation was the catalyst for the Female Founder Circles, a community for women engineers interested in building AI startups. Each FFC cycle welcomes a cohort of around 50 women for two months of programming that includes fireside chats with existing female AI founders, company-building workshops with Pear investment partners, and other in-person events designed to help women build meaningful relationships with one another, such as pitch competitions, spa days, and public speaking practice.Demand for FFC has exploded, Ho said, with more than 500 women applying for the most recent cohort that kicked off last month. And the program has already been a success: more than 70% of participants end up incorporating their startups, and at least five women have matched with another female co-founder in their cohort, she said."Three of our FFC founders have already raised Series Bs, which is pretty incredible," Ho told BI. "We first meet them, and they're really shy, and then three years later, they're running a 100-person company and making eight figures. It's incredible to see how we can build a community that makes a difference."As women in AI create opportunities that could help them succeed, their work parallels women in another once-white-hot subsector of the startup world: at the height of the crypto craze, female-led blockchain startups earned about 6.4% of venture dollars in the third quarter of 2022, <a target="_blank" class="" href="https://www.bitget.com/blog/articles/bitget-report-the-gender-gap-in-blockchain-startup-funding-press-release">according to data from Bitget</a>.Funding in the space has dropped off dramatically during the last two years, and women continue to struggle when it comes to connecting with investors and closing rounds, <a target="_blank" class="" href="https://www.forbes.com/sites/digital-assets/2024/08/29/what-web3-data-reveals-about-gender-inequality-in-the-crypto-industry/">Forbes recently reported</a>.For Shreya Rajpal, Pear VC's FFC was one of the first times she felt genuine, positive support from the people around her. As a software engineer who cut her teeth in startups and on Apple's machine learning initiatives, she was accustomed to being the only woman whose work was judged with more scrutiny than that of her male coworkers."There are a lot of men who aren't very supportive, and being the only woman on a team means that they're often an undue level of attention on your work, so you stand out, for better or for worse," Rejpal told BI. "Pretty early on, it was obvious that I kind of needed to justify my space in the room a lot more compared to other folks."Fast forward to today, and Rajpal is the CEO and co-founder of Guardrails AI, which builds risk and reliability systems for generative AI programs. As she's progressed in her career, she's made an effort to build community with other women in tech. It's work that takes significant time, but it's been "life changing" in terms of succeeding as a founder and well worth the effort, she said.Guardrails earlier this year raised a $7.5 million seed funding round led by Zetta Venture Partners with participation from Pear, Bloomberg Beta, and GitHub Fund.In addition to participating in bigger groups like FFC, Rajpal has sought out mentorship opportunities with other women in engineering, machine learning, and project management."I became friends with a woman who is five to six years older than me and in the industry for that much longer, doing the things that I wanted to do," she said. "Hearing from her and what worked for her, in terms of changing jobs and talking to her about how she made those decisions, was the stuff that ended up being really impactful for me."Stephanie Guo, a partner at Sapphire Ventures based in San Francisco, is constantly iterating on community events for women interested in AI that strike the right balance between informational – think fireside chats and panel discussions – and informal ways for women to form connections that turn into mentor relationships.These events aren't just for would-be founders: Guo says that while the number of female-funded AI startups can sometimes seem "abysmally small," she's encouraged by the number of women who hold leadership positions at AI startups, funds, and bigger companies."We're creating both the space to have dialogue, but also a networking opportunity," Guo told BI. "These relationships stick, and there are business opportunities that actually form from them."

For women building AI startups, finding community has been the key to success

<ul class="summary-list"><li>Sword Health cut a portion of physical therapists last month, the company confirmed to BI.</li><li>The startup is working to increase the number of patients its physical therapists care for using AI.</li></ul>Sword Health has made cuts to its clinical workforce as the $3 billion startup seeks to manage more patients with the help of AI, Business Insider has learned.The startup, which provides virtual care for conditions like muscle and joint pain, let go of 13 of its physical therapists treating patients in October, Sword confirmed to Business Insider.Three former employees who spoke with BI on the condition of anonymity said Sword previously had around 75 physical therapists actively caring for patients, putting the October cuts at around 17% of Sword's treatment-facing clinicians.The layoffs come as Sword seeks to enable its PTs to treat more patients using AI. Sword aims to have its physical therapists manage an average of 700 patients at any given time by the end of 2024, according to documents reviewed by BI. That's a significant jump from the caseload previously allotted to Sword's clinicians, according to three former employees, who said a high caseload at the beginning of 2024 would've been around 200 to 300 patients per therapist. These numbers could include patients who aren't actively engaged in therapy, according to the company.In a statement to BI, a Sword spokesperson said the cuts were "all performance-based decisions, made on clinical engagement data." The spokesperson said Sword currently has open positions for more than 30 physical therapists. Sword, which hit a <a target="_blank" class="" href="https://swordhealth.com/newsroom/introducing-phoenix">$3 billion valuation</a> in June after pulling in $130 million in fresh financing, has been vocal about its ambitions to scale its business using AI while keeping clinicians in the loop."What we're looking to do internally is to have AI as one master expert, but at the same time, everything gets vetted and validated by a human person," CEO Virgilio Bento <a target="_blank" class="" href="https://www.businessinsider.com/sword-health-strategy-focusing-on-ai-ahead-of-a-potential-ipo-2023-8">told BI</a> in September 2023.Three former employees said that Sword began using AI-generated messages for patient conversations in the spring. The technology allows the physical therapists to accept an AI-generated message, edit it, or reject it, before sending the message to patients, the former employees said. The AI also helps PTs prioritize the most critical patients who might need more attention, according to the company. Following its $130 million financing round, Sword announced an <a target="_blank" class="" href="https://swordhealth.com/newsroom/introducing-phoenix">expansion of its AI platform</a> with a new product that the company said can converse with patients during their virtual physical therapy sessions and give them feedback in real time.It's also hoping to land more employer contracts with an <a target="_blank" class="" href="https://swordhealth.com/newsroom/outcome-pricing">outcomes-based pricing model</a>, unveiled in September. In those contracts, Sword will get paid based on how much progress its patients make.Sword's recent technology and pricing pushes also point to an approaching IPO. Bento told BI in 2023 that <a target="_blank" class="" href="https://www.businessinsider.com/sword-health-strategy-focusing-on-ai-ahead-of-a-potential-ipo-2023-8">he'd only be interested in taking Sword public if it's profitable</a>. The startup said in June that it expects to be profitable by the end of 2024, and could go public <a target="_blank" class="" href="https://www.axios.com/pro/health-tech-deals/2024/06/04/sword-healths-road-to-ipo">as soon as the second half of 2025</a>.It's not the only digital health startup waiting at the IPO gates. Its biggest competitor, musculoskeletal startup Hinge Health, <a target="_blank" class="" href="https://www.businessinsider.com/hinge-health-s-1-morgan-stanley-ipo-2024-9">has hired banks, including Morgan Stanley, to file its S-1</a> in anticipation of a public market debut, Business Insider first reported in September.Omada Health is also expected to test the IPO waters. BI first reported in October that <a target="_blank" class="" href="https://www.businessinsider.com/exclusive-omada-health-confidentially-filed-s1-ipo-public-2024-10">Omada filed its S-1 this summer</a>.

$3 billion startup Sword Health cuts some physical therapists as it ramps up AI to treat more patients

<ul class="summary-list"><li>European battery firm Northvolt said on Monday it would lay off 1,600 workers.</li><li>The startup, founded by two former Tesla execs, builds batteries for electric vehicles.</li></ul>A European battery startup founded by two former <a target="_blank" class="" href="https://www.businessinsider.com/tesla">Tesla </a>executives is cutting a fifth of its workforce amid a darkening outlook for electric vehicles.Swedish battery maker Northvolt announced on Monday it would lay off 1,600 employees and scale back on expansion plans, citing efforts to prioritize its existing customers.<a target="_blank" class="" href="https://northvolt.com/articles/northvolt-rescopes-operations/">Peter Carlsson</a>, CEO and cofounder, said in a press release that the company needed to make "tough" decisions to respond to "headwinds in the automotive market, and wider industrial climate. We now need to focus all energy and investments into our core business." The company was founded in 2016 by Carlsson and Paolo Cerutti and has been backed by investors including Goldman Sachs, Baillie Gifford, and Spotify cofounder Daniel Ek. It <a target="_blank" class="" href="https://www.businessinsider.com/northvolt-trying-fix-electric-vehicle-supply-chain-battery-recycling-2023-4">aimed to revolutionize battery manufacturing</a> but has struggled in recent months.BMW pulled out of a $2.1 billion order for battery cells for its EVs in June, outlets including Reuters reported.Northvolt has also faced <a target="_blank" class="" href="https://sifted.eu/articles/northvolt-trouble-cancelled">a series of deaths</a> among workers at one of its factories near the Arctic Circle in northern Sweden.In late 2023 the company asked investment banks to pitch for roles in a listing as soon as this year that could have valued Northvolt at about $20 billion. It's unclear when, or even if, the company will go public.EV companies have slashed jobs over the past year as demand for electric vehicles has slowed. Tesla laid off more than 10% of its global workforce in April, and rivals <a target="_blank" class="" href="https://www.businessinsider.com/rivian-ceo-one-brand-wont-win-ev-industry-tesla-2024-9">Rivian</a> and <a target="_blank" class="" href="https://www.businessinsider.com/lucid-ceo-comments-tesla-losing-its-way-elon-musk-distracted-2024-5">Lucid</a> have also cut workers.Northvolt did not immediately respond to a request for comment from Business Insider.

Another blow for electric vehicle drive as battery startup Northvolt lays off 1,600 workers 

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/fisker-ocean-reservation-cancellations-electric-car-leaked-data-2024-3">Fisker</a> has filed for bankruptcy, following its warnings of potential business failure.</li><li>The company initiated a series of layoffs over the past few months.</li></ul>Fisker filed for Chapter 11 bankruptcy protections on <a target="_blank" href="https://assets.ctfassets.net/cghen8gr8e1n/6W19OiEBJDVIFVEmo4feHA/df902c5cb2b067251a300efb0b35f611/Fisker-Filing-FINAL.pdf">Monday</a>, marking a brutal blow to the startup that was once worth as much as $8 billion.Fisker, the <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/what-happened-henrik-fisker-automotive-startup-ocean-electric-vehicle-2024-6">second failed automotive startup</a> founded by car designer Henrik Fisker, is the latest EV upstart to fail."Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," Fisker said.The company said that its manufacturing pause would remain in place but that it plans to file "customary motions" with the bankruptcy court to ensure it can continue to pay employee wages and its vendors.As the EV industry at large faced headwinds this year, Fisker was no exception. It encountered difficulty selling its EVs and some <a target="_blank" href="https://www.businessinsider.com/mkbhd-fisker-ocean-review-marques-brownlee-video-tiktok-2024-3">very public complaints</a> from customers as it raced to shore up more financing and potential rescue buyers. Last week, the company initiated a recall for a software-related issue that it said caused some of its vehicles to suddenly lose power.Fisker has initiated a series of layoffs over the past few months. In April it told workers it would further <a target="_blank" href="https://www.businessinsider.com/read-email-fisker-sent-staff-warning-layoffs-2024-4">reduce its workforce</a> to "preserve cash." That was after the company said in February that it planned to slash its workforce by 15%. The company brought in a chief restructuring officer who was given "sole authority" over some financial matters, including a potential sale, as part of an agreement with one of its investors.Fisker had been looking for potential buyers to stave off bankruptcy. Fisker CEO Henrik Fisker told staff in April that the startup was in <a target="_blank" href="https://www.businessinsider.com/fisker-tells-staff-startup-in-talks-with-4-automakers-buyout-2024-4">talks with four automakers</a> for a potential buyout, BI reported.EV makers <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.reuters.com/business/autos-transportation/lordstown-motors-files-bankruptcy-sues-foxconn-2023-06-27/">Lordstown Motors</a> and <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://techcrunch.com/2024/03/25/bankrupt-ev-startup-arrival-sold-its-assets-to-canoo/">Arrival</a> have also filed for bankruptcy in the past year.It's another sign of how difficult it is to run a successful EV business in the current economic environment, with industry stalwarts like <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/tesla-elon-musk-supercharger-layoffs-concern-confuse-suppliers-2024-5">Tesla</a>, <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/laid-off-rivian-after-surviving-earlier-layoffs-2024-2">Rivian</a>, and <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/layoffs-sweeping-us-these-are-companies-making-cuts-2024">Lucid</a> all cutting their workforces as weakening demand squeezes the electric vehicle industry.Do you work for Fisker or have a tip? Reach out to the reporter via a non-work email at <a target="_blank" href="mailto:gkay@insider.com">gkay@businessinsider.com</a>

Embattled EV startup Fisker files for bankruptcy

<ul class="summary-list"><li>Henrik Fisker's second automotive startup <a target="_blank" href="https://www.businessinsider.com/fisker-automotive-files-for-bankruptcy-2024-5">filed for Chapter 11 bankruptcy</a> on Monday.</li><li>Fisker was pitched as a Tesla rival, but workers say mismanagement led to compounding problems.</li></ul><a target="_blank" href="https://www.businessinsider.com/fisker-ocean-range-360-mile-tesla-model-y-extreme-2023-6">Fisker's</a> staff was in chaos as they prepared to deliver the company's first batch of electric cars to US customers.It had been four years since famed automotive designer Henrik Fisker unveiled his Tesla rival, an SUV called the Ocean, and the vehicle still wasn't ready.In the weeks leading up to the big June 2023 event, Fisker staff raced to fix faulty parts on at least four of the 22 EVs that were set to be delivered — even stripping parts off the CEO and CFO's personal cars to repair the vehicles, including door handles and seat sensors, according to 11 sources familiar with the incident.Two days later, Fisker board member Wendy Gruel's Ocean SUV, one of the cars that had been delivered at the event, shut off on a public road while going full speed, five sources said. Later, the same thing happened to Geeta Gupta-Fisker, Henrik's wife and the company's CFO and COO, workers said.A Fisker spokesperson denied that workers used parts from pre-production vehicles for customer cars and said Gruel's car didn't stop on a public road. The company said Gupta-Fisker's vehicle had malfunctioned, but the issue was resolved.When <a target="_blank" href="https://techcrunch.com/2024/02/09/fisker-ocean-braking-power-loss-problems-investigation/">TechCrunch previously reported</a> the incident with Gruel's car, the publication said the company had confirmed the incident and said the issue was fixed.The issue was unrelated to <a target="_blank" href="https://www.businessinsider.com/fisker-fixing-some-evs-with-parts-from-inventory-vehicles-sources-2024-4">Fisker's part swapping</a>, but one thing was clear: the electric cars had barely hit the road and already the problems were piling up.Henrik Fisker's EV startup seemed to be an easy sell at first. The 60-year-old automotive veteran boasts a long history in the industry, known for being the designer behind the Aston Martin V8, the BMW Z8 roadster that famously appeared in a 1999 James Bond film, and helping design Tesla's Model S.Even though it was Henrik's second automotive startup after his first company went out of business in 2013, some workers told Business Insider that it was easy to dismiss worries early on that his second company could meet the same fate.For his part, Henrik said he <a target="_blank" href="https://www.wsj.com/articles/car-designer-henrik-fisker-lost-his-first-race-with-elon-musk-he-wants-to-go-again-11596811140?mod=article_inline">planned to do things differently</a> this time. He would follow Apple's model by outsourcing production through Magna International and he also aimed to target the middle of the market with a more affordable EV option that could compete with Tesla's best-selling Model Y. Fisker Inc emerged in 2016 and went public in 2020 via a SPAC backed by Apollo Global Management. At one point, the company's market value soared as high as $8 billion.At the time, Fisker was one of several EV startups to burst onto the scene — Rivian, Lucid, and Lordstown all wanted the chance to compete with Tesla. Since then, production and market headwinds have pushed some EV startups to shutter and major players like <a target="_blank" href="https://www.businessinsider.com/ford-cuts-production-of-f150-lightning-cybertruck-rival-ev-demand-2023-12">Ford</a> and GM to scale back their electric-vehicle operations. Even Tesla has struggled, seeing <a target="_blank" href="https://www.businessinsider.com/tesla-rough-year-sales-slump-layoffs-china-ev-competition-2024-4">revenue decline and layoffs.</a>"I was hopeful at first," one former VP, who worked at both Fisker startups, said. "Initially, at least, it seemed like he'd learned from his mistakes. It became obvious later on that they hadn't."A Fisker spokesperson said it would be "unfair" to compare the two companies.On Monday, the company announced it had filed for Chapter 11 bankruptcy after months of struggling to stay afloat. The company cited "various market and macroeconomic headwinds."Business Insider spoke with over two dozen current and former Fisker employees who worked at the startup during various periods from its launch in 2016 to the present. The workers, whose identities are known to BI, requested anonymity as they were not authorized to comment on Fisker's behalf and feared professional reprisal.<h2 id="e8954edd-4b73-4f38-85d2-814ed075f355">A husband and wife duo who workers say mismanaged their way into a mess</h2>Many of Fisker's woes can be traced back to the husband-wife duo that launched the brand, multiple former and current workers told BI.They described a disorganized environment in which unqualified people were brought in to lead major programs and basic automotive standards were ignored.While Henrik often served as a figurehead, Gupta-Fisker was heavily involved in everyday decisions, including on the engineering side, 11 workers said. Prior to taking on the role of CFO and COO at Fisker, Gupta-Fisker had served as an investment manager for the Fisker family office and as an advisor at a nonprofit. She had no prior experience in the automotive industry. But at Fisker, the workers said she managed deals with Magna and outside parts suppliers, frequently popped into engineering meetings, and weighed in on everything from parts purchases to software decisions.A spokesperson for Magna declined to comment on Fisker. A Fisker spokesperson denied comments that Henrik took on a more passive role and said he was "deeply involved."<div type="image" title="henrik fisker" height="798" width="1200" msid="110936369" hostid="261"></div>49-year-old Gupta-Fisker quickly became known in the company for her shrewd cost-cutting abilities. But, her strategy meant that at times Fisker ended up using components that didn't match the correct specifications for the Ocean, five former and current workers said. Gupta-Fisker made several decisions to use cheaper parts against Fisker executive and Magana executives' advice, two workers said. The mismatches led to issues with over-the-air updates, the five workers said.The company said Magna oversaw the majority of parts sourcing and a "significant" amount of the parts came from Magna and its suppliers.In conversations with BI, staff blamed many of the Ocean's faults on the cost-cutting efforts.Several workers said that in the months leading up to the vehicle's launch, they filed internal reports recommending that the product undergo further testing and development before its release. They said they were told the company planned to proceed anyway."The focus was on getting the car to market as soon as possible," one former worker said. "The overarching belief was we could fix things with updates later on."A Fisker spokesperson said Magna was responsible for testing and releasing the Ocean and it had been fully certified by regulators in the US and Europe. The company has been sending out over-the-air updates since 2023, the company said.Ahead of the release, Fisker engineers were aware of multiple issues with the vehicle, according to five current and former workers, as well as internal documents viewed by Business Insider. Engineers had identified issues with the effectiveness of the car's door handles, key fobs, and seat sensors.Over the past year, the National Highway Traffic Safety Administration (NHTSA) has launched four investigations into Fisker's SUV, including issues with inadvertent braking and flaws in the vehicle's door latch system. The company said it is cooperating with NHTSA.Fisker has also faced dozens of lemon law lawsuits. Last week, Fisker issued a recall for a software-related issue that it said caused some of its vehicles to suddenly lose power.<h2 id="8e98472b-4e09-47d7-bcfa-881e8d846bb4">Cutting corners led to compounding issues</h2>In its haste to bring the car to market, Fisker failed to set up an effective system for processing repair orders and warranty claims, seven current and former workers said. Technicians were tasked with filling out the work orders and many of them said they hadn't been trained on the process.In lieu of a working warranty system, some workers began processing the repairs without the proper California Bureau of Automotive Repair codes and EPA license numbers, using "123456" as a placeholder on a number of repairs, according to an internal document viewed by BI. In March, a VP at Fisker warned the issue made the company non-compliant with NHTSA protocols and unable to properly track and report safety concerns.A Fisker spokesperson said the issue was "an internal error with only draft work orders early in the service process that was immediately corrected."<div type="image" title="The Fisker Ocean electric SUV." height="2180" width="4000" msid="110936368" hostid="261"></div>Without a proper system to process warranties or repair orders, the majority of repairs went unaccounted for, seven current and former workers said. That meant there wasn't an adequate way for Fisker to keep track of which parts were being used for repairs for its own financial records. It also meant many customers did not get a record of their repairs, workers said.Meanwhile, Fisker also struggled to find the necessary parts for all of the fixes. The company hadn't set up much inventory for aftersales parts, so some of the parts used for customer fixes either came directly off the factory line, meaning they were meant for production vehicles, or the parts were stripped off pre-production and production vehicles, 11 workers with knowledge of the issue said.In one instance, Fisker stripped parts off an engineering test vehicle that had been shipped from Magna's facility in Graz, Austria under an import bond, according to three former workers and emails viewed by BI. The vehicle was supposed to be destroyed in its entirety shortly after it was delivered to comply with the terms of the import. This is typically within a year, according to NHTSA, but the period can be extended in one-year increments up to 3 years. The vehicle's parts were not intended to be used for customers' cars.The company denied any test vehicles had been used for parts and said all vehicles that had been imported for testing were destroyed under NHTSA's supervision within the allotted time period.The spokesperson also denied that Fisker had a shortage of after-sales parts: "The Service department made its own forecast for parts, based on their sector knowledge. The Purchasing department supported those requests."Fisker staff also looked for clever ways to address the parts shortage. In some instances, workers who visited Graz were told by managers to bring parts back in their suitcases to avoid paying import fees, seven workers said. One worker recalled having to leave personal belongings behind to fit air vents and key fobs into their luggage; another said they packed a larger bag to fit trim panels.Fisker declined to comment on the claims.<h2 id="e953bce8-39b3-440c-9715-39f271372785">A sales scramble amid negative reviews and vanishing demand</h2>Fisker was initially successful in generating interest in the Ocean, with over 65,000 reservations initially placed.But in the year since the Ocean's release, the company has delivered around 7,000 vehicles, a Fisker spokesperson said. Negative reviews — including YouTuber MKBHD calling it the <a target="_blank" href="https://www.businessinsider.com/mkbhd-fisker-ocean-review-marques-brownlee-video-tiktok-2024-3">"worst care I've ever reviewed"</a> — took a toll on the brand, driving thousands of would-be customers to <a target="_blank" href="https://www.businessinsider.com/fisker-ocean-reservation-cancellations-electric-car-leaked-data-2024-3">cancel their reservations.</a>In November, Fisker moved to bring in hiring recruiters to help sell the vehicle, as well as orchestrate the delivery of the car after the sale had been processed, six former workers said. In many cases, the recruiters, who had initially been brought onto the human resources team, had zero experience in automotive sales.A Fisker spokesperson said that recruiting staff did join the sales efforts, though the company said they were asked to stay because they were successful in the new role.<div type="image" title="Marques Brownlee reviewed the Fisker Ocean for a second time." height="936" width="1694" msid="110936373" hostid="261"></div>Selling the car wasn't easy either. The recruiters found themselves directly competing with the company's established sales team and there weren't enough leads to go around. Four former workers said Fisker's reservation numbers included many duplicate names in its count and it was difficult to track which customers had connected with a sales worker. As a result, some people on the reservation list would find themselves getting multiple calls per day from different Fisker representatives.At one point, sales workers were instructed to target customers who had canceled their orders and pepper them with calls in an attempt to get them to reverse their decision, three former workers said.Fisker also began hosting pop-up events to boost sales, including events in partnership with fan blog Fiskerati, two former employees told BI. The events varied from meetups at Panera parking lots to larger-scale test drive events. In at least one instance, the event was shut down after Fisker failed to get permission from the owner of the location, the two sources said. Queues of Fisker owners that needed repairs also showed up at the events, three former workers said. Fisker told BI that the event hosted at Panera was not a company event."Sometimes it was hard to sell the cars when you'd take someone on a test drive and any number of error messages would pop up," one former worker from sales said. "As time went on and it became clear the writing was on the wall, we became even more honest with the customers on the risk," they added.Fisker said it was aware of the ADAS issues but it was fixed with an update.Meanwhile, some customers who'd canceled their orders and never paid for the car ended up mistakenly receiving delivery of the vehicle anyway, four former workers said. Former Fisker Ocean owner Kurt Mechling told BI he received delivery of the vehicle before he'd signed off on the order or had his payment successfully processed.In March, <a target="_blank" href="https://techcrunch.com/2024/03/27/fisker-misplaced-payments-internal-audit-bankruptcy/#:~:text=Fisker%20lost%20track%20of%20millions%20of%20dollars%20in%20customer%20payments%20for%20months,-Sean%20O'Kane&amp;text=Fisker%20temporarily%20lost%20track%20of,to%20complete%2C%20TechCrunch%20has%20learned.">TechCrunch reported</a> that Fisker temporarily "lost track of millions of dollars in customer payments" for multiple months. Four workers with knowledge of the issue confirmed to BI the incident involving misplaced payments occurred.When the carmaker conducted an internal audit in December over the issue, workers began scrambling to find the missing payments and bring some of the vehicles that had been mistakenly delivered back, the workers said. Some workers were encouraged by upper management to threaten the customers by saying they'd put them on a repossession list which could impact their credit score, the former workers said.A Fisker spokesperson said the company had an "organized process" to address issues with vehicles that had not been paid for that was in line with industry standards.<h2 id="2d075735-437a-44c8-8b3a-477539207853">Filing for bankruptcy — again</h2>Fisker had been facing the possibility of bankruptcy for months.Fisker warned in March that it might go out of business within the year. The stock was delisted from the New York Stock Exchange in April after it fell to 9 cents per share.Fisker <a target="_blank" href="https://www.businessinsider.com/fisker-sends-employees-possible-layoff-notice-2-months-2024-4">warned</a> staff in an April filing that they could be laid off if the company couldn't find a buyer or additional investor. The company brought in a chief restructuring officer who was given "sole authority" over some financial matters, including a potential sale, as part of an agreement with one of its investors.Fisker also dropped prices by as much as $24,000 for some versions of the vehicle and conducted a series of layoffs that whittled the company down to the bone.Ahead of the bankruptcy filing, Fisker's workforce consisted of less than 100 people, according to two sources with knowledge of the issue. The remaining workers were involved in last-ditch efforts to offload the company's remaining inventory, the people said.A week before the bankruptcy filing, Fisker denied it had less than 100 workers left and told BI it continues to sell vehicles in the US and in Europe. It declined to specify how many workers remained.In its Chapter 11 filing, Fisker said that its manufacturing pause would remain in place but that it plans to file "customary motions" with the bankruptcy court to ensure it can continue to pay employee wages and its vendors.Over the past few months, workers have expressed dissatisfaction with what they view as Henrik and Gupta-Fisker's inability to <a target="_blank" href="https://www.businessinsider.com/fisker-ceo-all-hands-meeting-announcing-layoffs-2024-5">take accountability</a> for their actions. A Fisker spokesperson pushed back on the comments questioning Henrik's business prowess.For Henrik, whose earlier company, Fisker Automotive, filed for bankruptcy in 2013, his present predicament echoes the past."I think it's a story of ego. He wanted to make a car and stamp his name on it. Henrik is a great designer, but he doesn't have the business acumen beyond that," an individual who worked with Henrik at several companies, including his first automotive startup. "The lessons he should have learned from the first startup were never implemented and he rushed a car to market once again."June 18, 2024: Updated to reflect that Fisker filed for Chapter 11 bankruptcy.June 12, 2024: Added clarification that NHTSA requires temporarily imported vehicles to be destroyed within 3 years and that Fisker said it had done so within the allotted time period.Do you work for an EV company like Fisker or Tesla? Reach out to the reporter from a non-work email and device at gkay@businessinsider.com or 248-894-6012.

Inside the downfall of Henrik Fisker's second automotive startup, which just filed for bankruptcy

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Almost Friday! You'll likely never be as rich as Nvidia's Jensen Huang, but you can start to write emails like him. <a target="_blank" href="https://www.businessinsider.com/nvidia-jensen-huang-email-style-concise-key-points-insiders-2024-5">More on his "TL;DR approach."</a>It's the last day of our Memorial Day sale for <a target="_blank" href="https://www.businessinsider.com/subscription/limited-offer">80% off a Business Insider subscription</a>.In today's big story, we're looking at the wave of talent-focused deals <a target="_blank" href="https://www.businessinsider.com/wave-ai-acquisitions-deals-who-could-get-bought-2024-5">set to shake up the AI startup market</a>.What's on deck:<ul><li>Markets: The biggest threat to obesity drug makers <a target="_blank" href="https://markets.businessinsider.com/news/stocks/south-park-stock-market-jinx-glp1-weight-loss-stocks-ozempic-2024-5">could be South Park</a>.</li><li>Tech: Why is a popular email service still stuck in the Stone Age? <a target="_blank" href="https://www.businessinsider.com/gmail-update-fix-email-tabbed-inbox-2024-5">It's time to fix Gmail</a>.</li><li>Business: The workplace habits that <a target="_blank" href="https://www.businessinsider.com/things-you-do-at-work-that-annoy-your-boss-2024-5">annoy the hell out of your boss</a>.</li></ul>But first, forget the milk; we'll take the whole cow.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3 id="7fa5f018-5b05-4a37-a8dc-d3f89138bcb3">The big story</h3><h2 id="5fd547b9-ec52-41fc-8e08-4f4b27dd8097">M&amp;A(I)</h2><div type="image" title="net catching emojis of people on computers" height="1440" width="1920" msid="110568815" hostid="261" sizebytes="119890"></div>In the age of AI, if you can't hire them, acquire them.Few things are more coveted in business nowadays than AI specialists. Everyone wants to supercharge their business with generative AI.But with only so many AI specialists, the talent doesn't come easy. Compensation is steep — seven-figure pay packages — and <a target="_blank" href="https://www.businessinsider.com/ai-talent-wars-big-tech-ceos-recruiting-paying-huge-packages-2024-4">competition is even fiercer</a>. You know it's serious when Mark Zuckerberg is getting involved in recruiting.So why worry about one AI specialist when you can get a company full of them?The future of the AI industry could be a wave of "acquihires," writes Business Insider's Rebecca Torrence and Riddhi Kanetkar, who <a target="_blank" rel="noopener" href="https://www.businessinsider.com/wave-ai-acquisitions-deals-who-could-get-bought-2024-5">mapped out potential buyers and sellers in the space</a>.The M&amp;A(I) industry is already off to a hot start this year, with 55 exits for AI startups in the first quarter, according to Crunchbase data.And it's not just cutting-edge tech companies that are shopping. Acquihires give non-tech companies a chance to jumpstart an AI strategy that'd be difficult to stand up otherwise.<div type="image" title="hand grabbing" height="1440" width="1920" msid="110568817" hostid="261" sizebytes="210518"></div>Acquihires come with plenty of risks.Deals can be tricky in the best of circumstances, let alone in an overvalued market with high interest rates.Companies looking to cut a deal are also flying a bit blind. <a target="_blank" href="https://www.businessinsider.com/ai-investments-vcs-startups-valuations-2024-3">VCs eagerness to back AI startups</a> means there are plenty of companies big on valuation but little on substance.And then there's the risk the people acquired aren't a good fit.Technologists have the luxury of being particular about their work culture. Remember when OpenAI employees <a target="_blank" href="https://www.businessinsider.com/openai-employees-did-not-want-to-work-for-microsoft-2023-12">weren't pumped about potentially working at Microsoft</a> amid the Altman ouster?But some startups might not have a choice if funding gets tight and an acquihire is their only option. And if that's the case, that's a problem, Julia Gudish Krieger, a managing partner at Pari Passu Venture Partners, told me.She's rarely seen acquihires work because the motivation for the deal is often more about getting a soft landing than having a passion for the product they'll be promoting or building in their new roles."If there are real synergies and the incoming group is genuinely excited to roll up their sleeves and help co-create, then I'm sure an acquihire can be magic in theory," Gudish Krieger said. "But this is easier said than done."<h2 id="8120060b-ae66-48dc-b149-f0489a30ffa2">3 things in markets</h2><div type="image" title="south park" height="650" width="1300" msid="110568818" hostid="261" sizebytes="35180"></div><ol><li>Oh my god! They killed Novo Nordisk! South Park's latest Ozempic storyline <a target="_blank" href="https://markets.businessinsider.com/news/stocks/south-park-stock-market-jinx-glp1-weight-loss-stocks-ozempic-2024-5">could be bad news for obesity drug makers and their investors</a>. Publicly traded US companies prominently featured on the comedy show have gone on to underperform the S&amp;P 500.</li><li>The stock market and the economy are going their separate ways. Corporate earnings show continued growth despite a GDP slowdown. While rare, the divergence of the two <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-rare-setup-slowing-economy-earnings-growth-profits-2024-5">typically means a great environment for investors</a>. The S&amp;P 500 has historically delivered average quarterly returns of 3.6% when that happens.</li><li>Don't expect stocks to slow down in June, according to Fundstrat. The always-optimistic Tom Lee sees the stock market rising 4% next month. Continued disinflation coupled with lots of cash sitting on the sidelines means the market has more room to run despite reaching record highs. <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-june-gains-5-catalysts-inflation-earnings-growth-2024-5">Here's what else has him so bullish</a>.</li></ol><h2 id="f4b54806-7f81-450c-ba32-92560d4fae9b">3 things in tech</h2><div type="image" title="A hat over a laptop" height="1500" width="2000" msid="110568819" hostid="261" sizebytes="109116"></div><ol><li>Summer fit check: tech edition. In a wild turn of events, tech executives are grabbing (good) attention for their style. Fashion experts shared how <a target="_blank" href="https://www.businessinsider.com/summer-style-fashion-tech-workers-zuckerberg-gates-yaccarino-2024-5">tech workers can upgrade their often monotone wardrobes</a>.</li><li>Gmail is stuck in the Stone Age. When Google introduced the tabbed inbox in 2013, it was a game changer. There was finally a way to separate important emails from the clutter. But in the decade since, <a target="_blank" href="https://www.businessinsider.com/gmail-update-fix-email-tabbed-inbox-2024-5">Gmail has failed to keep up.</a></li><li>Apple comes under pressure. A group of French trade associations have implored CEO Tim Cook to <a target="_blank" href="https://www.businessinsider.com/publishers-advertisers-ask-tim-cook-halt-apple-web-eraser-tool-2024-5">halt the rollout of a new "web eraser" feature</a>, over fears it could have a catastrophic impact on the online advertising industry. The tool would allow Safari users to remove unwanted content like ads, text, and images from webpages.</li></ol><h2 id="9260fa45-d397-4b3c-b4f8-4bb193976216">3 things in business</h2><div type="image" title="Businessman Looking at 'Help Wanted' Sign that appears as a Giant Hurdle Before him" height="900" width="1200" msid="110568820" hostid="261" sizebytes="82832"></div><ol><li>A bizarre government rule is preventing young men from getting jobs. America's young men aren't working. Recessions and low wages could be to blame, but our <a target="_blank" href="https://www.businessinsider.com/employment-young-men-labor-force-jobs-unemployment-insurance-hiring-2024-5">broken unemployment system</a> might ultimately be making employers reluctant to hire them.</li><li>Your boss probably thinks you're annoying, too. As much as your boss gets on your nerves, chances are <a target="_blank" href="https://www.businessinsider.com/things-you-do-at-work-that-annoy-your-boss-2024-5">you're not completely innocent.</a> From complaining to asking too many questions, career experts shared with BI the employee behaviors that drive bosses crazy.</li><li>Elon Musk in the White House? Donald Trump and the Tesla CEO have discussed a <a target="_blank" href="https://www.businessinsider.com/elon-musk-could-be-donald-trump-advisor-wsj-reports-2024-5">potential advisory role</a> if the ex-president wins November's presidential election, The Wall Street Journal reported. Trump could give Musk input on border security and economic policies, per the outlet.</li></ol><h2 id="1ad7b482-3f4b-44b4-81b6-a864aa386478">In other news</h2><ul><li><a target="_blank" href="https://www.businessinsider.com/sleep-loss-deprivation-america-reasons-health-inequality-economic-stress-money-2024-5">The real reason Americans can't get enough sleep</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/fisker-ceo-all-hands-meeting-announcing-layoffs-2024-5">Inside Henrik Fisker's staff meeting, where the CEO announced more layoffs hitting his electric car company</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/biden-billion-weapon-package-israel-haunt-him-rafah-red-line-2024-5">Biden's $1 billion weapons package to Israel is coming back to haunt him</a>.</li><li><a target="_blank" href="https://www.businessinsider.com/how-software-engineer-negotiated-salary-big-tech-meta-tesla-salesforce-2024-5">A software engineer worked at Tesla, SAP, and Salesforce. Here's how he negotiated his salary, including a $520,000 Meta offer.</a></li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/intelliphones-ai-apple-iphone-android-google-2024-5">We had cellphones, then feature phones, then smartphones. Now, 'IntelliPhones' are coming.</a></li><li><a target="_blank" href="https://www.businessinsider.com/millennial-retired-early-financial-independence-fire-strategies-six-figure-income-2024-5">A millennial who had a mini-retirement at 38 shares her strategies for achieving financial independence — and why she wants to return to the workforce</a>.</li></ul><h2 id="9f5d80ac-3466-429f-a50a-2ffbb70c65ff">What's happening today</h2><ul><li>Today's earnings: Costco, Best Buy, and other <a target="_blank" href="https://markets.businessinsider.com/earnings-calendar">companies are reporting</a>.</li></ul>The Insider Today team: <a target="_blank" href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, deputy editor and anchor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/jordan-parker-erb">Jordan Parker Erb</a>, editor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, editor, in London. <a target="_blank" href="https://www.businessinsider.com/author/george-glover">George Glover</a>, reporter, in London. <a target="_blank" href="https://www.businessinsider.com/author/grace-lett">Grace Lett</a>, associate editor, in Chicago.

AI startups could see a wave of 'acquihires,' and it might get messy

<ul class="summary-list"><li>Square Roots told staff it was closing most of its locations and cutting jobs, two former staff said.</li><li>One farm in Grand Rapids will remain open to service business partners, a source told Insider.</li></ul>Square Roots, a tech farming startup that was cofounded by Elon Musk's brother, Kimbal, shut down the majority of its remaining locations on Tuesday and laid off most of its staff, two employees who were laid off as a result of the closures told Insider.The vertical farming startup was founded in 2016 and quickly grew to five locations, announcing a partnership with Gordon Food Service in 2019. Square Roots grows herbs and salad greens using shipping containers and artificial light and aims to localize food sources, making farming a year-round process.The "smart farm" company had over $90 million in total funding as of April 2022, and some of its backers include close friends of Elon Musk, including David Sack's Craft Ventures, according to Pitchbook.Square Roots CEO Tobias Peggs, who cofounded the company alongside Kimbal Musk, notified employees on a Zoom call on Tuesday that the startup would halt production at its locations in Springfield, Ohio, Shepherdsville, Kentucky, and Kenosha, Wisconsin, the two sources said. <a href="https://kenoshanews.com/news/local/musk-square-roots-kenosha-farm-shutdown/article_dfc25d1a-25ee-11ee-ac69-17878afee82c.html">Kenosha News</a> was the first to report that the Wisconsin location was facing a shutdown and <a href="https://www.wdrb.com/news/business/urban-farming-startup-square-roots-abruptly-shutters-shepherdsville-ky-facility/article_4c17deda-2730-11ee-8b6b-abc6e7946736.html">WDRB later confirmed</a> the company planned to shut down four of its farms.A former employee at the company's Grand Rapids location said that they were told one of the two farms at the location had been shut down and the other would stay in use to support the company's new business model.All but about 10 of the workers at the Grand Rapids location, which employed over two dozen staff, were let go, the former worker said. All on-site employees at the other locations were terminated, the other ex-employee said.The exact number of layoffs couldn't be learned. The company was estimated to have around 198 employees as of June, according to PitchBook."It was framed as a temporary thing, but the layoffs didn't feel temporary," the former Grand Rapids worker said. "It wasn't like they were saying 'You guys will be offered your jobs back' at any point."<div type="image" title="Kimbal Musk" height="3056" width="4591" msid="102022979" hostid="261" sizebytes="394682"></div>The company shut down its original farm in Brooklyn earlier this year, laying off about 50 people at the time, according to a <a href="https://www.squarerootsgrow.com/blog/an-update-from-square-roots-about-today-and-the-future">January press release</a>.The recent layoffs came across as a surprise to staff, the ex-employees said. Square Roots had only just opened the Kenosha facility — its largest yet— in August and its Shepherdsville location had been operational for less than three months, they told Insider."It was just a normal day," the former Grand Rapids employee said of the latest layoffs and farm closures announced Tuesday. "We were in the middle of production and everyone received an email and Slack saying essentially 'Drop everything and attend this Zoom call.' There was really no context as to why this was happening so suddenly and everybody was kind of shocked."During the Zoom call, Peggs told employees the company was shifting its focus away from packaging its own product and focusing more on supporting business partners like Gordon Food Services, the ex-staffers said.A spokesperson for Gordon Food Service directed Insider to Square Roots and a spokesperson for the startup did not respond to multiple requests for comment ahead of publication. The company <a href="https://www.wdrb.com/news/business/urban-farming-startup-square-roots-abruptly-shutters-shepherdsville-ky-facility/article_4c17deda-2730-11ee-8b6b-abc6e7946736.html">told local news</a> that Square Roots was changing its business model to focus on "farming as a service."<div type="image" title="A photo of Square Roots CEO Tobias Peggs showing some of the company's vertical farming in New York." height="3280" width="4928" msid="102022981" hostid="261" sizebytes="455332"></div>"We're now operating our controlled climate farms exclusively for our strategic partners — whether that's to immediately secure the supply of high quality crops, or to explore novel ways of profitably growing high calorie food indoors," the company told WDRB. "As we've made this move, we have had to pause commercial production in some of our facilities while we reconfigure them to be more suitable for servicing customers under the Farming as a Service model, and we look forward to bringing these facilities back on line in the future."Employees were told they would learn via email shortly after the Zoom call whether their role had been impacted by the farm shut-downs. The Grand Rapids employee said the workers at their location learned they had been laid off after they were abruptly locked out of their work email."It was quite abrupt and has been very devastating to this wonderful team of people," the former Grand Rapids employee said. "A lot of us feel like we have to start from ground zero now. There's not a lot of hydroponic startups in Michigan, so it's tough on everybody."

Elon Musk's brother's 'smart farm' startup is shutting down most of its locations and gutting its workforce

<ul class="summary-list"><li>2023 has been a busy year in the field of <a target="_blank" href="https://www.businessinsider.com/how-to-get-job-artificial-intelligence-ai-chatgpt-bing-google-2023-2">artificial intelligence</a>. </li><li>People are increasingly using the technology in both business and personal settings</li></ul>2023 has been quite the year for artificial intelligence.Take ChatGPT. Even though OpenAI launched the chatbot just last November, nearly one hundred million people are now using it each week, <a target="_blank" href="https://www.businessinsider.com/multiple-versions-of-openai-ceo-sam-altman-emerge-2023-12">CEO Sam Altman</a> said a year after the chatbot's release.Speaking of Altman, how about the long weekend of <a target="_blank" href="https://www.businessinsider.com/sam-altman-ousted-fired-openai-ceo-chatgpt-maker-2023-11">his ousting — and reinstatement — as head of OpenAI</a>, which made him even more of a household name and kept tech watchers glued to the news?AI evolution and adoption doesn't seem like it's going to slow down in 2024. The world is only at the beginning of a revolution — especially in the corporate world, according to Michael Chui, a McKinsey partner who leads research on the current state of generative AI.While "change is hard," companies will continue to have to grapple with how to teach their employees AI skills and implement the technology responsibly, he told Business Insider.Joshua Builta, a research director at Omdia, also pointed to challenges ahead. <a target="_blank" href="https://markets.businessinsider.com/news/stocks/chatgpt-ai-mistakes-hallucinates-wrong-answers-edge-computing-morgan-stanley-2023-2">AI can still spew out wrong answers</a>, and there appears to be a lack of talent needed to build language models, amongst other concerns, he said at this year's NYC AI Summit.But before we ring in 2024 and all it may herald in the space, BI took a look back over some key points from the last year in AI.<h2>The leadership tussles at OpenAI</h2>In mid-November, things appeared to boil over at ChatGPT owner OpenAI. On a Friday, Sam Altman was ousted as CEO after the board agreed that it was no longer confident in his ability to continue leading the company, shocking the tech community. But in the following days, hundreds of OpenAI employees signed a letter <a target="_blank" href="https://www.businessinsider.com/openai-workers-threaten-to-quit-over-sam-altman-firing-2023-11">threatening to quit</a> unless the board stepped down and Altman was reinstated as CEO.During that period, <a target="_blank" href="https://www.businessinsider.com/microsoft-has-hired-former-openai-ceo-sam-altman-2023-11">Altman also got offered a role at Microsoft</a> — a large OpenAI stakeholder — leading the software giant's new AI department along with Greg Brockman, the president of OpenAI.Then, on the following Tuesday and after much outrage in the business community, Altman returned to his position as CEO of OpenAI. A new board was also created following his return. <a target="_blank" href="https://www.businessinsider.com/why-did-openai-board-fire-sam-altman-interview-2023-11">Altman has been very tight-lipped</a> about the reasons behind the drama (though disagreements about <a target="_blank" href="https://www.businessinsider.com/how-sam-altman-openai-drama-ai-silicon-valley-debate-spotlight-2023-12">the speed of AI development</a> may have factored into it), but one thing everyone can agree on: It was a very long five days for all involved.<h2>The AI chatbot wars heated up</h2><div type="image" title="Gemini and ChatGPT both displayed on phone screens" height="2250" width="3000" msid="106293220" hostid="261" sizebytes="70004"></div>OpenAI wasn't just contending with leadership upheaval: It's also faced a slew of rival chatbots.In February, Microsoft unveiled its new Bing search engine with generative AI capabilities. That same week, Google announced its AI chatbot it calls <a target="_blank" href="https://www.businessinsider.com/google-gemini-ai-model-release-ultra-pro-bard-openai-tpu-2023-12">Bard. That's now powered by Gemini</a>, the search engine's AI model that the company claims will be more powerful than OpenAI's GPT-4 model.Then, in November, xAI, an AI company started by Elon Musk, launched Grok. The tech billionaire calls it the "anti-woke" alternative to ChatGPT. (<a target="_blank" href="https://www.businessinsider.com/how-to-use-grok-elon-musk-ai-chatbot-2023-12">BI tested Grok, and it's… spicy</a>.)<h2>Money poured into the AI space…</h2>Microsoft kicked off 2023 by pushing an additional <a target="_blank" href="https://www.businessinsider.com/microsoft-shows-off-smaller-ai-models-after-openai-chaos-2023-12">$10 billion</a> into OpenAI. In September, Amazon said it'll invest <a target="_blank" href="https://www.businessinsider.com/amazon-invests-4-billion-in-anthropic-2023-9">$4 billion into Anthropic</a>, another OpenAI rival. That same month, Ernst &amp; Young, unveiled plans to teach its 400,000 employees how to use AI in the workplace as part of its $1.4 billion investment in the field.It's not just big companies trying to take part in the AI gold rush. Venture capital firms have placed eight-figure bets on <a target="_blank" href="https://www.businessinsider.com/the-most-promising-artificial-intelligence-startups-of-2023-2023-8">AI startups.</a><h2>…and companies spent big on AI talent…</h2>Tech titans like <a target="_blank" href="https://www.businessinsider.com/hinge-meta-nvidia-amazon-walmart-offering-high-salaries-ai-jobs-2023-8">Meta, Amazon, and Netflix</a> have been hiring workers — some for as much as $900,000 a year — who can build AI models. <a target="_blank" href="https://www.businessinsider.com/ai-jobs-pay-non-tech-companies-how-to-find-2023-7">Non-tech companies</a> in the legal, healthcare, and education sectors have also been looking to fill roles that seek experience using ChatGPT for six-figure salaries.Generative AI is also creating new opportunities. Jobs like prompt engineer, chief AI officer, AI ethicist, generative AI strategist, and AI data trainer have emerged. There's also a cottage industry of new side hustles like <a target="_blank" href="https://www.businessinsider.com/chatgpt-courses-instruction-academic-lucrative-side-hustle-2023-4">ChatGPT courses</a>, AI-content editing services, and AI-focused newsletters.<h2>…but we saw there's a very real human cost to AI development</h2><div type="image" title="A remote worker looking at his computer in a dark room" height="2880" width="5120" msid="106293223" hostid="261" sizebytes="170912"></div>Behind the impressive capabilities of some AI chatbots: contract labor.In January, Time published an investigation detailing the brutal working conditions that <a target="_blank" href="https://www.businessinsider.com/openai-kenyan-contract-workers-label-toxic-content-chatgpt-training-report-2023-1">Kenyan data labelers</a> faced when training ChatGPT to generate safe responses. Workers reported going through troves of potentially illegal content that includes child sexual abuse, bestiality, and rape for less than $2 an hour.<h2>Concerns about AI job replacement have grown</h2><div type="image" title="A robot kicks back with its feet on an office desk" height="5008" width="8500" msid="106293225" hostid="261" sizebytes="1768718"></div>Workers' fears of robots taking their jobs is nothing new, but the advent of ChatGPT has only deepened their concerns.A Goldman Sachs report from March found that <a target="_blank" href="https://www.businessinsider.com/generative-ai-chatpgt-300-million-full-time-jobs-goldman-sachs-2023-3">generative AI could disrupt around 300 million full-time jobs</a>, especially in white-collar professions. ChatGPT can do things like develop code, generate marketing materials, create lesson plans, and write legal briefs. The potential for AI job replacement is, in part, why thousands of <a target="_blank" href="https://www.businessinsider.com/hollywood-writers-strike-over-technology-ai-netflix-streaming-studios-2023-7">Hollywood writers went on strike</a> earlier this year.But while some business leaders like Elon Musk predict that AI will create <a target="_blank" href="https://www.businessinsider.com/elon-musk-predicts-ai-will-lead-to-future-no-jobs-2023-11">a world without jobs,</a> others believe that's a little far fetched. "AI won't take your job," economist Richard Baldwin said during a panel at the 2023 World Economic Forum's Growth Summit. "It's somebody using AI that will take your job." "<h2>And concern over how AI is used has also grown</h2>Ilya Sutskever, a cofounder of OpenAI, predicts that AI could create new problems like a rise in fake news and cyberattacks, automated AI weapons, and even "infinitely stable dictatorships."Some bad actors are already using AI to deceive others for personal gain. <a target="_blank" href="https://www.businessinsider.com/ai-voice-generator-phone-scam-imposter-crime-money-cash-2023-6">AI phone scams</a>, where would-be criminals use voice changers to impersonate peoples' loved ones in an attempt to steal money, have gotten more sophisticated. Spam bots have tried to scam some people into investing in fake cryptocurrencies.And generative AI is blurring the line between fiction and reality. This year, some <a target="_blank" href="https://www.businessinsider.com/chatgpt-essays-college-cheating-professors-caught-students-ai-plagiarism-2023-1">college students were accused of plagiarism</a> after professors accused them of submitting essays they believed were AI-generated. <a target="_blank" href="https://www.businessinsider.com/universities-ditch-ai-detectors-over-fears-students-falsely-accused-cheating-2023-9">Content detectors</a> have been found to be unreliable.False information has only become more rampant as a result of generative AI. NewsGuard, a site that tracks online misinformation, identified 614 unreliable AI-generated news websites as of December 18. <a target="_blank" href="https://www.businessinsider.com/guides/tech/what-is-deepfake#how-are-deepfakes-used?">Deepfakes</a>— AI-generated images, videos, and audio designed to be indistinguishable from the real world — now appear to be more convincing and harder to detect than ever before.And as of July, major firms like Apple, Deutsche Bank, Amazon issued bans or <a target="_blank" href="https://www.businessinsider.com/chatgpt-companies-issued-bans-restrictions-openai-ai-amazon-apple-2023-7">restrictions on using ChatGPT at work</a> due to data privacy concerns.<h2>That's prompting governments to seek to regulate AI</h2>In October, US President Joe Biden signed a new <a target="_blank" href="https://www.businessinsider.com/white-house-advisor-catching-up-on-ai-biden-executive-order-2023-10">executive order</a> urging the most influential tech companies to be more transparent about how they're developing their AI.Two months later, the European Union reached a provisional agreement on its <a target="_blank" href="https://www.businessinsider.in/tech/news/eu-reaches-provisional-agreement-on-landmark-ai-act-a-global-first/articleshow/105854979.cms">AI Act</a>. Dubbed "the world's first rules on AI," it aims to establish legal guidelines around how companies can develop the technology to ensure that it's safe and environmentally sustainable.The Brazilian government is also working on a policy to oversee AI risks.<h2>People are also using generative AI in their personal lives</h2>Curious users have flocked to ChatGPT to help them <a target="_blank" href="https://www.businessinsider.com/chatgpt-travel-itenerary-vacation-costa-rica-errors-logistics-advisors-2023-3">plan trips</a>, find an apartment, overcome learning challenges, and lose weight.AI aficionados are even pushing to new extremes. Some have <a target="_blank" href="https://www.businessinsider.com/when-your-ai-says-she-loves-you-2023-10">fallen in love with AI chatbots</a>; others have used it to <a target="_blank" href="https://www.businessinsider.com/soulmate-users-mourn-death-ai-chatbots-2023-10">mourn the death of loved ones</a>. Earlier this year, <a target="_blank" href="https://www.businessinsider.com/ai-is-coming-for-tinder-and-other-dating-apps-2023-8">Match Group</a>, the parent company behind popular dating apps like Tinder, Bumble, and Hinge, announced its plans to integrate AI to help singles flirt, land more dates, and eliminate ghosting.<h2>There was a rise in AI hardware</h2><div type="image" title="Humane's AI pin projects a blue image onto someone's hand during a demonstration." height="1015" width="1908" msid="106293228" hostid="261" sizebytes="48474"></div>Many tech aficionados expect new generative AI gadgets to be the <a target="_blank" href="https://www.businessinsider.com/ai-devices-openai-next-apple-iphone-jony-ive-humane-meta-2023-10">iPhones of the AI era</a>.In September, Meta launched its second version of its <a target="_blank" href="https://www.businessinsider.com/meta-ray-ban-smart-glasses-gen-z-friends-review-photos-2023-11">Ray-Ban Meta smart glasses</a>, which the company says can livestream footage onto Facebook or Instagram. Owners of the shades can speak to Meta's conversational AI assistant using their voice.Two months later, Humane.ai announced the waitlist for its <a target="_blank" href="https://www.businessinsider.com/ai-pin-humane-keynote-video-features-price-order-2023-11">AI pin</a>. It's a wearable device the company claims can project text onto your hand, search through your phone using voice commands, and even calculate how many grams of protein are in a handful of almonds.Plus, OpenAI's Altman is reportedly in talks with <a target="_blank" href="https://www.businessinsider.com/chatgpt-head-iphone-designer-jony-ive-ai-device-openai-report-2023-9">Jony Ive</a>, the designer of the iPhone, to create an AI-powered device.<h2>And the world moved closer to achieving AGI — at least according to some leaders</h2>Artificial general intelligence is the ability for AI to perform complex cognitive tasks like the ability to make decisions without human intervention.<a target="_blank" href="https://www.businessinsider.com/nvidia-ceo-jensen-huang-agi-ai-five-years-2023-11 ">Jensen Huang</a>, the cofounder and CEO of Nvidia, the chip giant helping power the AI revolution, says that AGI will be achieved in just five years. John Carmack, an ex-Meta exec, believes AGI will be reached by the 2030s and be worth trillions.Still, hat doesn't mean AI will takeover the world. Instead, business leaders say that in the next decade, <a target="_blank" href="https://www.businessinsider.com/google-deepmind-cofounder-mustafa-suleyman-everyone-will-have-ai-assistant-2023-9">everyone will have AI assistants</a>, as well as access to <a target="_blank" href="https://www.businessinsider.com/ai-could-mean-free-doctors-lawyers-openai-vinod-khosla-prediction-2023-12">free doctors and lawyers</a>.

From Sam Altman's ousting as OpenAI's CEO to ChatGPT entering the workforce, here's a look at the year in AI 

<ul><li>Around 67% of the <keyword id="3216" type="General" weightage="20" keywordseo="students" source="Orion">students</keyword> prefer working with large companies having more than 1,000 employers, as per a new <keyword id="516598" type="General" weightage="20" keywordseo="Deloitte-report" source="Orion">Deloitte report</keyword>.</li><li>Students seem to be more concerned especially after the pandemic when a large number of people were laid off from companies</li><li>And 47% of students say that salaries are the biggest motivator to choose between jobs.</li></ul>Demand for undergraduates is <a href="https://economictimes.indiatimes.com/jobs/recruiters-flock-to-campuses-to-hire-undergraduates/articleshow/91249636.cms">at an all-time high</a> and employers are looking out for talents around campuses. However, students are looking out for growth opportunities and fair compensation. Around 67% of the students prefer working with large companies having more than 1,000 employers, as per a new Deloitte’s <keyword id="13957212" type="General" weightage="20" keywordseo="Campus-Workforce-Trends-report" source="Orion">Campus Workforce Trends report</keyword>. And out of those, about 46% of the students specifically desire to work in public sector organisations and units, largely due to the fact that government jobs offer job security. Students seem to be more concerned especially after <keyword id="8902449" type="General" weightage="20" keywordseo="COVID-19-pandemic" source="Orion">COVID-19 pandemic</keyword> when a large number of employees were laid off. While 26% of the students choose social media influence over corporate jobs, according to the report. The Deloitte report garnered participation from more than 150 organizations and 250 campuses across industries and tiers of campuses. <cmsannotation type="cmsannotation" annotationid="Salary is the biggest motivator for students" comment="subhead" text="Salary is the biggest motivator for students">Salary is the biggest motivator for students</cmsannotation> Around 47% of students say that salaries are the biggest motivator to choose between jobs, says the report. The pay offered across different specialisations varies based on the demand in each corporate sector. The information technology (IT) sector is one of the top choices among students as the industry offers the highest payouts and salaries as compared to other sectors. Data science and artificial intelligence are the highest paying jobs in the IT sector, followed by computer science, as per the report. The engineering specialisation also attracts high pay differentials from the consulting/services industry. While, students in entrepreneurship and businesses are offered the lowest salaries, followed by FMCG or FMCD industry. <cmsannotation type="cmsannotation" annotationid="Attrition rates among students" comment="subhead" text="Attrition rates among students">Attrition rates among students</cmsannotation> One year attrition is the highest among students from engineering and B.Tech courses and two-year attrition is the highest among candidates from BBA and BMS courses. However, the <keyword id="505875" type="General" weightage="20" keywordseo="attrition-rate" source="Orion">attrition rate</keyword> (between 15-20%) is highest in engineering degrees as compared to last year. The reason behind this is the ongoing supply and demand gap situation in the sector, says the report. “This pay-driven war for talent is primarily on account of the technology boom, as well as the changing preferences of young talent (flex, hybrid, on-site). One can expect this wave to last a few cycles before a reverse trend starts. While that happens, the pay budgets for fresher/young talent of organisations are expected to swell to near unsustainable levels,” said Neelesh Gupta, director of Deloitte India. <cmsannotation type="cmsannotation" annotationid="Students are choosing to work in metro cities" comment="subhead" text="Students are choosing to work in metro cities">Students are choosing to work in metro cities</cmsannotation> The students are preferring to work either in top metropolitan cities like Delhi, Mumbai, and Bangalore or at their home locations. “In the pre-pandemic world, a fairly limited number of jobs would exist in tier-2/tier-3 locations (except for plants/factories) and negligible in the home location of many students. Post introduction of hybrid/work from anywhere models, this trend is witnessing a surge and is likely to be a game-changer in how work happens/jobs are constructed,” says the report. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/most-companies-prefer-their-employees-back-to-offices-but-are-giving-them-the-choice/articleshow/91613454.cms">Most companies prefer their employees back to offices but are giving them the choice</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/uber-announces-new-features-for-wedding-guests-business-events-and-more/articleshow/91617551.cms">Uber announces new features for wedding guests, business events and more</a>

Students are now preferring to work in big corporates over startups

<ul class="summary-list"><li>Electric <keyword id="14146178" type="UNKNOWN" weightage="60" keywordseo="scooter" source="Orion">scooter</keyword> <keyword id="11897892" type="UNKNOWN" weightage="60" keywordseo="startup" source="Orion">startup</keyword> <keyword id="12117527" type="UNKNOWN" weightage="60" keywordseo="bird" source="Orion">Bird</keyword> is laying off almost a quarter of its staff.</li><li>Bird said in a statement "macro economic trends" meant it needed to push for profitability.</li></ul>Electric scooter rental startup Bird has joined the <a href="https://www.businessinsider.com/layoffs-sweeping-the-us-these-are-the-companies-making-cuts-2022-5">growing raft of tech companies laying off staff</a> as the <keyword id="11893570" type="UNKNOWN" weightage="60" keywordseo="economy" source="Orion">economy</keyword> shrinks.The <keyword id="12651442" type="UNKNOWN" weightage="60" keywordseo="layoffs" source="Orion">layoffs</keyword> were first reported by the Twitter account <a href="https://twitter.com/Layoffsfyi/status/1534215837204107265">Layoffs.fyi</a>, which tracks job cuts in tech companies. In a statement to <a href="https://techcrunch.com/2022/06/07/bird-plans-to-layoff-23-of-staff/">TechCrunch</a> Bird confirmed it was making 23% of staff redundant.Bird later confirmed the layoffs Insider. Bird told TechCrunch it had a headcount of about 600 people, meaning almost 140 roles are affected. The layoffs span a range of positions, from senior managers to new hires, a Bird spokesperson told Insider."While the need for and access to micro-electric vehicle <keyword id="11894924" type="UNKNOWN" weightage="60" keywordseo="transportation" source="Orion">transportation</keyword> has never been greater, macro economic trends impacting everyone have resulted in an acceleration of our path to profitability," the company said in a statement to Insider."In addition to eliminating all non-critical third party spend, we also unfortunately had to depart with a number of team members who passionately helped create a new industry and paved the way for more eco-friendly transportation," Bird said.Bird's spokesperson told Insider laid off staff would receive a minimum of three weeks severance.A number of tech companies including <a href="https://www.businessinsider.com/netflix-lays-off-150-amid-slowing-growth-subscriber-losses-2022-5?r=US&amp;IR=T">Netflix</a>, <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.theinformation.com%2Fbriefings%2Fpaypal-laid-off-83-people-in-april">PayPal</a>, and <a href="https://www.businessinsider.com/robinhood-layoffs-jobs-as-pandemic-popularity-wanes-2022-4?r=US&amp;IR=T">Robinhood</a> have cut jobs since April.Large tech companies including Meta and Microsoft have announced they're <a href="https://www.businessinsider.com/recession-2022-companies-prepare-economic-downturn-netflix-layoffs-meta-hiring-2022-5?r=US&amp;IR=T">freezing or slowing hiring,</a> while <a href="https://www.businessinsider.com/coinbase-is-withdrawing-job-offers-and-extending-hiring-freeze-2022-6">Coinbase</a> has even rescinded some job offers.<a href="https://www.businessinsider.com/scooter-startup-bird-cuts-30-percent-jobs-2020-3?r=US&amp;IR=T">Bird cut 30% of its workforce</a> in March 2020 on a group Zoom call. One worker told TechCrunch that this time the company told staff in one-on-one meetings, and the cuts had not come entirely out of the blue."In my case, my manager gave me a warning as soon as the Q1 earnings was released. As a result, I was mentally prepared," the former employee told TechCrunch.Miami-based Bird was founded in September 2017 and went public last year in a "blank check" deal. Its shares have since fallen more than 90%, leaving the company worth about $200 million. Its scooters are available to rent in dozens of cities and universities across the US, as well as cities in Europe and a handful in the Middle East.

Electric scooter startup Bird is laying off almost a quarter of its workforce

<ul class="summary-list"><li>Figure AI is raising millions from investors like Jeff Bezos and Microsoft for its humanoid robots.</li><li>The startup's robot, Figure 01, will perform dangerous warehouse jobs amid labor shortages.</li></ul>A startup that wants to put humanoid robots in warehouses around the world has an <a target="_blank" href="https://www.businessinsider.com/microsoft-openai-talks-investment-figure-ai-humanoid-robotics-report-2024-1">increasingly elite slate</a> of big-name backers with deep pockets.Figure AI Inc. is raising about $675 million in funding with the help of investors like Jeff Bezos and the Microsoft Corporation, according to a Friday <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-02-23/bezos-nvidia-join-openai-microsoft-in-funding-humanoid-robot-startup-figure-ai?sref=yaJhKSOh">Bloomberg report</a>, citing people familiar with the situation.The artificial intelligence startup aims to create autonomous humanoid workers that can <a target="_blank" href="https://www.businessinsider.com/ai-machine-learning-robotics-retail-supply-chain-technology-2023-10">support labor shortages</a> amid a waning workforce, the company's website says.The machine, called Figure 01, is an AI-powered, self-reliant robot with the ability to think, learn, and interact safely alongside humans, according to the company. The robots will be tasked with performing dangerous warehouse jobs for which there aren't enough workers.Other big backers include OpenAI, which once thought about acquiring Figure, according to Bloomberg, as well as Nvidia Corp., which just this week <a target="_blank" href="https://www.businessinsider.com/nvidia-just-showed-world-ai-daddy-now-chips-revenues-2024-2">announced $22.1 billion of revenue</a> in its fourth quarter, stunning analysts and the AI industry alike.Amazon founder Jeff Bezos has committed $100 million to Figure's mission through his firm Explore Investments, LLC, Bloomberg reported, and Microsoft is investing $95 million.Nvidia and an Amazon.com-affiliated fund both pledged $50 million, and Intel Corp.'s investing arm is giving $25 million, according to the outlet; OpenAI has pledged $5 million.Figure had a pre-money valuation of about $2 billion, Bloomberg reported.News of Figure's funding comes amid an AI boom as several companies, including Tesla, <a target="_blank" href="https://www.businessinsider.com/humanoid-robots-talk-carry-items-and-even-run-a-company-2023-11">work on their own robots.</a>

Jeff Bezos and Nvidia are throwing serious cash at a human-like robot startup 

Corporate expense management platform <keyword id="2738808" type="General" weightage="100" keywordseo="happay" source="Orion">Happay</keyword>, owned by credit <keyword id="6360117" type="General" weightage="50" keywordseo="card" source="Orion">Card</keyword> bill payment provider CRED, has slashed nearly 35 per cent of its workforce as part of a restructuring exercise, the media reported. According to leading startup news portal Inc42, at least 160 employees from departments like sales, marketing, tech, product, and operations, have been asked to go by the platform. According to the report, Happay is giving impacted employees three months salary along with an extension of insurance coverage and some other additional benefits. When reached, CRED did not immediately comment on layoffs at Happay, which it acquired in December 2021 in a cash and stock deal that valued Happay at $180 million. "With professional expenses forming a significant portion of credit card spends, bringing professional expense management into the CRED ecosystem is a natural extension of our proposition," <keyword id="192201" type="General" weightage="50" keywordseo="kunal-shah" source="Orion">Kunal Shah</keyword>, founder, CRED, had said in a statement during the acquisition. While Happay operated as a separate entity, the team worked closely with CRED leadership to leverage its ecosystem, build distribution, expand the product offering and drive scale. CRED last year acquired SaaS lending-as-a-service platform CreditVidya in a mix of cash and stock transaction for an undisclosed sum. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/fii-inflows-may-remain-consistent-in-may-with-turn-in-rate-cycle/articleshow/100234813.cms">FII inflows may remain consistent in May with turn in rate cycle</a> <a href="https://www.businessinsider.in/stock-market/news/fears-of-a-us-debt-default-are-mounting-as-the-deadline-to-lift-the-borrowing-limit-looms-heres-what-elon-musk-paul-krugman-and-jamie-dimon-have-warned-/articleshow/100229208.cms">Fears of a US debt default are mounting as the deadline to lift the borrowing limit looms. Here's what Elon Musk, Paul Krugman and Jamie Dimon have warned.</a> <a href="https://www.businessinsider.in/tech/news/heres-how-googles-new-ai-updates-will-transform-your-search-experience/articleshow/100242791.cms">Here’s how Google’s new AI updates will transform your search experience</a>

CRED-owned Happay lays off 35% of its workforce

US-based autonomous delivery robot <keyword id="17400486" type="General" weightage="20" keywordseo="startup-Nuro" source="Orion">startup Nuro</keyword> has announced that it will be laying off 30 per cent of its workforce, or about 340 employees, as part of a restructuring intended to extend its capital runway. Last week, <keyword id="5939073" type="General" weightage="20" keywordseo="nuro" source="Orion">Nuro</keyword> co-founders Dave Ferguson and Jiajun Zhu announced that the company would reduce staff and shift resources away from commercial operations and toward R&amp;D, reports TechCrunch. This year, Nuro will pause its plans to ramp up commercial operations and delay volume production of its third-generation delivery robot, the R3. According to Ferguson and Zhu, the company will be able to operate twice as long by making these changes, giving it enough capital to operate for another three years without raising more money. "While in the past we developed autonomy systems, designed and built custom vehicles, and deployed commercial pilots with partners in parallel, we will now pursue a more sequential development model," Nuro said in a blog post. "With our new approach, Nuro will not only get through this economic downturn, but we hope to emerge stronger on the other side," it added. This is the second time Nuro has laid off workers in a bid to cut costs and extend the capital runway. In November last year, the company laid off about 300 people, or 20 per cent, of its workforce. Moreover, the report said that those laid off will receive 12 weeks of severance, plus two more weeks for employees with two or more years of service, and eligible employees will receive 62.5 per cent of the target bonus (prorated for new hires) or spring bonus amounts for employees who receive a biannual performance bonus. Meanwhile, web services company Akamai Technologies is laying off nearly 3 per cent of its global workforce, as it focuses on the highest growth areas and sustaining profitability. According to reports, the layoffs are likely to impact about 300 employees. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tata-motors-posts-net-profit-of-5408-crore-in-q4-beats-estimates/articleshow/100189259.cms">Tata Motors posts net profit of ₹5,408 crore in Q4, beats estimates</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-hindenburg-row-sc-hints-at-granting-sebi-extension-on-probe-report-to-decide-on-may-15/articleshow/100185994.cms">Adani-Hindenburg row: SC hints at granting SEBI extension on probe report, to decide on May 15</a>

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