SoftBank-backed robotic pizza startup Zume plans to lay off up to 400 employees — 80% of its staff — and won’t renew its Seattle lease amid widespread restructuring to stop burning cash

This story requires our BI Prime membership. To read the full article, simply click here to claim your deal and get access to all exclusive Business Insider PRIME content. Zume, the startup famous for its pizza-making robots, plans to lay off about 400 employees across several offices in the US on January 13, Business Insider…

SoftBank-backed robotic pizza startup Zume plans to lay off up to 400 employees — 80% of its staff — and won’t renew its Seattle lease amid widespread restructuring to stop burning cash

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simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

Zume, the startup famous for its pizza-making robots, plans to lay off about 400 employees across several offices in the US on January 13, Business Insider has learned.The lease for its Seattle office, which consists mostly of engineering employees, will not be renewed amid the cuts, one source told Business Insider. Corporate-development and operations staff will also be widely affected, sources said.The layoffs come as the Mountain View, California, startup has struggled to secure additional funding from SoftBank. Zume cofounder and CEO Alex Garden has become so cautious that he has restricted all communication from his senior staff to outside investors.Garden tightened his already vicelike grip on the startup as its troubles continued to mount in the past few months, including canceling a companywide meeting in December, overseeing departures of executive staff, and effectively shuttering Zume Pizza, the pizza-making-robot division on which the startup was initially founded.Click here for more BI Prime stories.Zume, the startup famous for its pizza-making robot, plans to lay off about 400 employees on January 13, Business Insider has learned.Several divisions will be affected, according to sources close to the company, but the highest concentration of layoffs will be in the engineering, operations, and corporate-development parts of the business. According to current and former Zume employees, those were the divisions that were rapidly scaled, somewhat haphazardly, as the company pitched growth goals and business objectives that were unrealistic. One source said the startup’s Seattle office, which consists mainly of engineering teams, has chosen to not renew its lease amid the cuts.”They hired so many people,” one former Zume employee told Business Insider. Based in Mountain View, California, Zume was founded in 2015 and, as of Monday, had 496 employees listed on its  LinkedIn corporate profile. If 400 people were cut from the payroll, t
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