Robotics Company Boston Dynamics Lays Off Human Employees, Admitting It's 'Burning Through Cash'

Boston Dynamics, the robotics firm famous for its viral videos of humanoid Atlas and doglike Spot robots, has laid off 45 employees, which accounts for about 5% of its workforce. A company spokesperson confirmed to the Boston Globe that the layoffs impacted nearly every department. 

The company, owned by Hyundai Motor Group, has grown its workforce nearly fourfold since 2021. CEO Robert Playter told employees that while the company's future looks good, they needed to make these cuts to save money and focus on making a profit. He pointed out that Spot, Stretch and their work on Atlas are still doing well, but they must manage their money better to keep growing. 

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"We are also burning through cash at a rate that exceeds our commercial progress to date and we need to streamline our operations and production processes to support sustainable growth," the note sent to employees said. "Today is about making a very difficult short-term decision in service of our longer-term strategy and profitability goals."

From Viral Videos to Real-World Applications

Boston Dynamics has impressed millions of people online with videos showing robots doing amazing things, like Spot opening doors or Atlas doing flips. But making money from these robots has been challenging. Spot became commercially available in 2019 and Stretch, a robot designed to automate warehouses, was launched in 2022. The company is also working on a version of Atlas for factories.

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In spite of these developments, competition is intensifying. Boston Dynamics is under pressure to develop and commercialize rapidly as competitors like Agility Robotics, Tesla and Figure AI have raised billions to bring their own humanoid robots to market.

Spot Finds New Jobs

Spot, the $75,000 robot dog, has proved versatile across various industries. It's being used to patrol places like Donald Trump's Mar-a-Lago resort, helping the Secret Service with its sensors and cameras. The New York City Fire Department also uses Spot for search-and-rescue missions, keeping human responders safe in dangerous situations. During the COVID-19 pandemic, Spot even supported health care professionals by carrying iPads to talk to patients remotely and reduce PPE usage.

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Stretch Shines in Logistics

Stretch, a robot made for warehouse work, is now being used at the Otto Group's Hermes logistics center in Germany. Stretch's job is to unload heavy boxes, a tiring task that it handles well thanks to its robotic arm and special vacuum grippers. This lets human workers do other, less exhausting jobs. The Otto Group said Stretch has been very helpful and works well with their setup.

Boston Dynamics is still creating amazing robots, but making money from them is challenging and these layoffs show how hard it can be to grow a company that works on cutting-edge technology. Even so, robots like Spot and Stretch are showing how they can make a real difference in industries like health care, logistics and public safety.

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