HP’s Humane Acquisition: Major Raises for Some Employees Amidst Immediate Layoffs for Others
In a surprising turn of events in the tech industry, Humane, once hailed as a promising AI hardware startup in Silicon Valley, has announced a partial acquisition by HP for $116 million. This acquisition represents less than half of the $240 million that Humane previously secured in venture capital funding.
The Impact of Acquisition on Humane Employees
The acquisition news has left approximately 200 employees at Humane in a state of uncertainty. According to internal documents reviewed by TechCrunch and anonymous sources, the announcement triggered a chaotic day within the company.
Job Offers and Layoffs
Shortly after the acquisition was made public, many Humane employees received job offers from HP, featuring pay increases ranging from 30% to 70%, alongside HP stock and bonus plans. Notably, those who received offers primarily worked on the company’s core software. However, not every software team member was extended an offer.
- Employees in quality assurance, automation, and operations were informed of their layoffs on the same night the acquisition was announced.
- HP’s interest in gaining access to Humane’s pool of AI-focused software engineers was evident as they seek to bolster their capabilities in AI integration.
HP’s New Innovation Lab
With the acquisition, HP announced the establishment of a new innovation lab named HP IQ. This lab will house Humane’s co-founders, Imran Chaudhri and CEO Bethany Bongiorno, along with the startup’s AI operating system, CosmOS. The focus will be on enhancing HP’s personal computers, printers, and connected conference rooms with advanced AI technologies.
Reactions from the Tech Community
Social media has seen a flurry of reactions, with users humorously remarking on Humane employees transitioning from a cutting-edge startup to stable roles at HP, primarily working on AI-enabled printers. Despite the humorous takes, many employees were reportedly excited about the new job offers and increased salaries.
A Background on Humane’s Struggles
The challenges facing Humane were evident before the acquisition. The launch of the AI Pin was met with criticism from early users, which adversely affected employee morale. The product experienced significant setbacks, including:
- The AI Pin’s charging case was temporarily labeled a fire hazard.
- Sales returns exceeded sales at one point, prompting a price reduction from $699 to $499.
Following the acquisition announcement, Humane advised customers to “recycle” their $499 AI Pins, which are expected to stop functioning within two weeks.
Looking Ahead for Employees
Despite its challenges, some employees view Humane’s journey as a moderate success story. Many startups do not achieve significant sales or national attention, and the fact that some staff members are offered well-paying jobs at HP allows them to continue their projects.
Interestingly, as Humane’s AI Pin fades from the market, other AI wearables are gaining traction. Products like Meta’s Ray-Ban AI smart glasses and Rabbit’s R1 have recently launched, indicating a growing interest in AI-integrated wearables. Meanwhile, Apple has introduced a new iPhone model packed with AI features, further complicating the narrative for Humane’s original mission to replace smartphones.
In conclusion, while the acquisition of Humane by HP signifies a pivotal moment in the tech industry, it also raises questions about the future of AI hardware and the evolving landscape of wearable technology. For further information on tech developments, visit TechCrunch and stay updated on industry news.
