Humane, a secretive and highly valued startup, has made headlines after laying off 4 percent of its employees ahead of the release of its AI Pin. The company, which is set to begin shipping its first device in March, has described the move as a cost-cutting measure. The layoffs, affecting 10 people, come as Humane prepares to launch its much-anticipated $699 AI-powered pin, which is positioned as a smartphone replacement.

Founded in 2019 by CEO Bethany Bongiorno and her husband, Imran Chaudhri, both former Apple employees, Humane has garnered over $200 million in funding from prominent Silicon Valley figures, including OpenAI CEO Sam Altman. The startup’s recent decision to downsize its workforce has raised questions about its financial stability and strategic direction.

When approached for a statement, Bongiorno characterized the layoffs as part of a broader organizational restructuring to support the company’s growth trajectory. She also announced that founding CTO Patrick Gates would transition to an advisory role to prioritize family commitments. Despite Bongiorno’s attempt to downplay the situation, sources familiar with the matter have indicated that the affected employees were indeed informed of the layoffs, contradicting the company’s official stance.

As Humane gears up for the release of its AI Pin, the recent workforce reduction has sparked discussions within the tech industry about the startup’s future prospects and the challenges it may face in a competitive market. With the company’s ambitious plans and substantial backing, all eyes will be on the success of its upcoming product launch and the impact of the organizational changes on its overall performance.