Reports of Zume's shift in focus surfaced last week and took effect Monday. The five-year-old startup has now slashed 53% of its entire workforce to help control its cash burn which totaled $10 million a day last summer.
Why It's Important
Zume's valuation reportedly hit $1 billion when SoftBank invested $375 million back in 2018, CNBC reported last week. SoftBank has seen some notable hits to its investments, including WeWork and Uber while Zume is yet another setback for the Japanese investment arm.
Zume CEO and founder Alex Garden told CNBC the company continues to work with SoftBank whose CEO Masayoshi Son shares a similar vision of improving "the quality of people's lives."
Softbank and Zume's other investors are all on board with recent firings and support the shift in strategy.
Zume CEO and founder Alex Garden told RB in a statement the company's mission of creating a more sustainable food system "has not changed." The company's refreshed focus implies it will create 100 new jobs that laid-off employees can apply for.