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January 9, 2020 01:00 pm

Zume Is Laying Off Half Its Staff and Shuttering Its Robotic Pizza Delivery Business

An anonymous reader quotes a report from CNBC: SoftBank-backed Zume is laying off 360 employees, accounting for about 50 percent of its workforce, and shuttering its robotic pizza business to focus on food packaging. SoftBank invested $375 million in Zume in 2018, giving the start-up a $1 billion valuation. Previously, Zume was valued at just $218 million and had risen $71 million in total, according to Pitchbook. Like other SoftBank-backed startups, Zume used the capital to quickly scale and increase its workforce. But, over the last year, investors have shifted their focus from "growth at all costs" to a clearer path to profitability. Zume CEO and founder Alex Garden tells CNBC that it's a difficult day for the startup, but the changes being made will focus the business on "the inventions that are showing strong commercial traction." Garden says the company is creating 100 open roles in the Source Packaging unit that employees can reapply for. Pizza Hut has been testing Zume's round boxes on a limited basis. Zume's packaging -- which the company says is covered by a number of patents -- is made of sustainably harvested plant fiber and is industrially compostable. The robot pizza company, which launched in 2015, consisted of an army of robot sauce-spreaders and trucks packed full of ovens. Garden's goal at the time was to become the "Amazon of food."

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