Humane, the five-year-old startup has announced a 4 percent reduction in its workforce affecting 10 employees. Sources familiar with the matter revealed that this decision is part of a cost-cutting initiative following leadership’s indication of lowered budgets for the upcoming year.
CEO Bethany Bongiorno justified the workforce reduction as a crucial element of a broader organizational refresh aligning with the company’s evolution for the next phase of growth. Founding CTO Patrick Gates is also transitioning to an advisory role prioritizing family time.
Despite Bongiorno’s portrayal of the move as part of a wider strategy, it comes as the company gears up to launch its much anticipated product – the AI Pin. Priced at $699, this screenless AI-powered pin is positioned as a potential replacement for smartphones. Humane generated significant buzz when it unveiled the AI Pin in November subsequently opening preorders with shipments scheduled to commence in March.
The company’s decision to streamline its organizational structure and refocus key leadership roles signals a commitment to adapt to the evolving landscape. With over $200 million in funding from Silicon Valley heavyweights including OpenAI CEO Sam Altman, Humane’s trajectory has been closely watched since its inception in 2019 by founders Bethany Bongiorno and Imran Chaudhri both Apple alumni.
While Bongiorno emphasized the need for prudence and proactive measures. Sources indicated that the workforce reduction was communicated as a layoff raising questions about the transparency of the decision. As Humane navigates this pivotal juncture, the unveiling of the AI Pin takes center stage promising a unique blend of technology and design that could redefine the smartphone landscape. Only time will tell how this bold move coupled with internal restructuring will shape the future for Humane in the competitive tech market.
