The startup Aurora has several options for raising money. Selling the business to Apple or Microsoft is one of them.
Aurora plans to commercialize the trucks. For this they cooperate with FedEx, Paccar, Schneider, Werner and Xpress. The company was founded by former Google employees Chris Urmson founded.
Now is a memo from the CEO of aurora surfaced. Then you want to increase the liquidity of the company. Part of the memo are cost-cutting and money-making options. There is talk of a hiring freeze, job cuts, the partial spin-off of company assets or the sale of Aurora to financially strong tech giants such as Apple or Microsoft or a Tier 1 supplier.
The fact that the memo became known was due to an internal error. Instead of sending it to the board, it was mistakenly sent to the entire Aurora workforce — about 1,600 people. In response to the leaked email, the company wrote that such options are being considered by every company.
The initial effect was that the stock market price rose. However, raising money on the capital market is difficult. For the next year you need 300 million US dollars.
The biggest concern would be keeping staff morale up, which is why Urmson warns of job cuts. However, he recommends dismissing those who perform poorly and eliminating double positions. The hiring freeze could save over $7 million.
The sale of the test track or the lidar and simulation labs are also possible memo options. Also on the table are the elimination of the CEO equity grant, a 20% reduction in software licenses, the suspension of annual bonuses and the suspension of food service.
Selling is not the preferred option, Urmson said. However, that depends on the offer.