Rethink Robotics, a Boston-based robotics firm, has laid off 21 employees of its reported 85 to 90 employees. This is the first time the company has made cuts since it was founded in 2008 by iRobot co-founder, Rodney Brooks.
The move to downsize and cut somewhere around twenty percent of the company workforce may heighten client concerns, but panic is premature. Rather, this refocus shows Rethink solidifying itself as a company. Often, startups?especially those with an innovative product and excited investors?try to tackle the world when it?d be better to corner their market. It would seem Rethink Robotics is at this realization, and making the smart move.
CEO Scott Eckert revealed the layoffs are part of a company refocus to better promote Rethink?s $22,000 manufacturing robot, Baxter, which was recently upgraded as Baxter 2.0. The robot first went out to U.S. manufacturers in January, and has been used to automate a range of manual tasks in conjunction with human workers. Baxter?s success, especially in the plastics and packaging industries, highlights market segments for Rethink Robotics to develop further?plastics manufacturing, consumer goods, and warehousing and logistics.
?Instead of a broad approach to the market that we have had in the past, we can now focus on the best segments of the market and continue to drive rapid growth with a smaller team,? Eckert explained. ?Our volume trends are encouraging, our customer pipeline is encouraging, and we expect to see significant growth in 2014, however we will be able to achieve that in a more focused manner with fewer resources.?
In addition to the layoffs, the company?s vice president of product development, Elaine Chen, has also left the company. According to Eckert, Chen?s departure is unrelated to the layoffs, though she confirmed her leaving had been ?in the works for a while? and was coincidental timing.
Rethink Robotics recently raised $11.5 million in funding this October, from Two Sigma Ventures. This is in addition to the $73.5 million raised since its founding, with other backers such as Sigma Partners, Charles River Ventures and Highland Capital Partners.
For more on Rethink Robotics, visit the company?s RBR50 page.