Memo: Zume cuts another 200 employees after funding falls through - Business Insider

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Leaked memo: Troubled Softbank-backed robotics startup Zume just conducted a second round of sweeping layoffs after funding falls through

just laid off two-thirds of its remaining employees, roughly 200 staffers, as the funding it needed to survive failed to materialize in a post-coronavirus VC market. In a cruel twist of fate, employees were supposed to be notified of the cuts via Zoom, the video conferencing software with a similar sounding name but at the last minute cofounder and CEO Alex Garden instead sent a company-wide email Wednesday announcing the changes.

"We have seen our supply chain impacted and our customers delay or cancel business with us that would have generated revenue," Garden said in Wednesday's email, which was obtained by Business Insider. 'We have recently had no less than three potential investors back out of investment with Zume due to COVID-19's impact on their businesses," he continued.

The layoffs affected two of the three remaining business divisions within the company and were largely seen as an extension of the company's shifting strategy announced in December that contributed to layoffs in January. In January, the company effectively shuttered Zume Forward, its pizza-making robotics and food truck delivery operation.

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