Waltham, January 7: Boston Dynamics, a US-based robotics and engineering company, has reportedly laid off 5% of its workforce amid challenges. Boston Dynamics is renowned for its robot dogs and humanoid robots. The company is known for its research and development on dynamic robotic technology and innovation. According to a report, the Boston Dynamics layoffs were announced as the company aims to save cash.

Boston Dynamics said layoffs, affecting 45 people, were extremely necessary to manage the cash flow and focus on profitability, according to a report by Economic Times. The workforce reduction decision was confirmed by a Boston Dynamics spokesperson who said that it would affect all the departments. Boston Dynamics CEO Robert Playter informed all the employees about the job cuts and said the decision was important for the company's future. US Layoffs 2025: Job Cuts Coming to United States This Year As Companies Adjust Their Workforce to Prepare for Market Shifts, Says Report.

Playter also said that the robotics company was "burning through cash" faster than it could generate revenue. Therefore, he emphasised that the Boston Dynamics layoffs would help streamline operations and manage cash flow. Despite these challenges, CEO Robert Playter showed optimism about the company's future by cutting some roles from different departments. 

From 2021, Boston Dynamics expanded its workforce by hiring employees four times as advanced robotics became significant and profit-making. The tech company benefitted from the Spot robots, which were mostly used by various industries for search and rescue missions and security purposes. However, the competition started to intensify as other companies started developing their own humanoid robots, as per the report. 

In 2025, tech layoffs are not expected to slow down as companies face intense competition and experiment with innovative products that aim to automate tasks that would replace human jobs. This year, Google, Boeing, and several other companies have already confirmed the layoffs amid challenges. Layoffs in 2024: 151,484 Employees Laid Off This Year by 542 Companies, Tech Leaders Tesla, Intel, Dell, Microsoft, Meta and Others Cut Thousands of Jobs; Check Details.

The report mentioned that the IT layoffs reflected struggles in the tech industry, which was working on cutting-edge technologies. Boston Dynamics, despite facing challenges, decided to continue R&D while other companies like XACT announced their shutdown. A fintech company, Bench that offered accounting solutions also shut down amid various issues.

(The above story first appeared on LatestLY on Jan 07, 2025 10:23 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).