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.
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. 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.As for his relationship with SoftBank, Garden says, "It's incorrect that there was any acrimony.
Our 2020 strategic plan is weighted to strongly support our growing Zume Source Packaging business and to increase our ability to provide companies around the world with sustainable alternatives to plastic. This focus, along with other changes to our priorities, means we must significantly modify the structure of our company.
What a disaster SoftBank is having this year. Especially after the WeWork IPO debacle. Good grief.