All the hype in the world doesn’t always translate to immediate success.
The latest example is Humane, a hardware startup led by former Apple executives on a mission to build a device that would rival the iPhone. The company laid off 4% of its workforce this week, according to a report from The Verge.
The job cuts amount to 10 total people and arrive before the company shipped a single one of its devices, the AI Pin, a much-hyped product that is designed to replace a smartphone. The pin was unveiled in November, orders were taken, and shipments are expected to begin this March.
It’s a pin in a very literal sense: The AI-powered device has no screen and users actually pin it their bodies. In addition to a $699 price tag, users will also pay a $24 per month subscription.
Before any of them leave the factory, though, the company is making changes. It had raised hundreds of millions of dollars since launching in 2017, from investors such as Sam Altman of OpenAI, Kindred Ventures, and Hudson Bay Capital Management. Bethany Bongiorno, the company’s CEO and cofounder, wrote on LinkedIn Tuesday evening that there were several internal moves happening at the company, including Humane’s CTO, Patrick Gates, transitioning to an advisory role, among others.
“As we begin this new chapter of Humane, going from stealth to customer facing, we are making some changes to best prepare us for continued growth,” Bongiorno wrote. “These evolutions of growth can sadly also mean making difficult decisions for some, in this case we want to extend our sincere gratitude to 10 members of the team who we’ve parted ways with at Humane.”
Humane did not immediately respond to a request for additional comment.
Despite the job cuts and the optics surrounding them, Bongiorno also pointed out that the company is actively hiring for several roles, too. As for whether the pin will live up to the hype when it’s released later this year, we’ll just have to wait and see.
Recognize your brand’s excellence by applying to this year’s Brands That Matter Awards before the final deadline, June 7.
Sign up for Brands That Matter notifications here.
