In a surprising turn of events, Salt Lake City-based Sarcos Technology and Robotics Corporation, the national firm that acquired Pittsburgh’s RE2 Robotics less than two years ago, has announced the closure of its local presence. The company revealed its plans to lay off 150 employees and suspend commercialization efforts related to subsea, aviation, and solar robotics hardware programs. Instead, Sarcos aims to shift its focus towards the development of artificial intelligence (AI) software.
The decision comes as CEO and President Laura Peterson recognizes the potential of their AI software platform in revolutionizing the industrial robotics market. By leveraging AI and machine learning, Sarcos aims to significantly reduce robotic training times and enhance the agility of industrial robots. Peterson stated, “…we see a broad addressable market and an opportunity to build a robust software business that is scalable at a substantially faster rate than our hardware solutions.”
While this strategic shift in focus marks the end of an era for Sarcos and its Pittsburgh office, it presents new opportunities for growth. The closure of the Pittsburgh office will consolidate operations in Salt Lake City, allowing the company to streamline its resources and further its commitment to being good stewards of capital.
As the company prepares for this transition, there are naturally concerns about the fate of the affected employees. While Sarcos has yet to comment on severance pay or job assistance, it is worth noting that affected employees will receive the legally required 60 days’ notice of termination.
By prioritizing the development of their AI software platform, Sarcos seeks to achieve near-term revenue opportunities aligned with customer needs while reducing capital requirements and associated risks. Ultimately, the company aims to create long-term shareholder value. This strategic shift reflects Sarcos’ commitment to ensuring a bright financial future by maximizing the potential of their AI software.
With the closure of their Pittsburgh office, Sarcos bids farewell to the successful merger with RE2 Robotics. Reflecting on the acquisition, founder Jorgen Pedersen acknowledged the complementary technologies that made the collaboration successful. The merger multiplied their capabilities, combining RE2’s mobile manipulation technologies with Sarcos’ anthropomorphic technologies and exoskeletons.
As Sarcos looks ahead, their leadership is confident that by decoupling AI and machine learning software from their robotic systems, they can reach a broader market faster. This decision promises a leaner and more efficient business model, reducing cash usage and positioning the company for profitability without the need for additional financing.
While the closure of Sarcos’ Pittsburgh office signifies the end of a chapter, it also heralds the beginning of a new era focused on AI software development. In a rapidly evolving robotics industry, Sarcos aims to stay at the forefront by capitalizing on the untapped potential of AI and machine learning.
What is the reason behind Sarcos Robotics’ decision to close its Pittsburgh office?
Sarcos Robotics is shifting its focus from hardware programs to the development of AI and machine learning software. The company sees a larger opportunity in the robotic AI market and believes that their software platform has the potential to revolutionize industrial robots.
How will the closure of the Pittsburgh office affect employees?
While specific details about severance pay and job assistance have not been mentioned, affected employees will receive the legally required 60 days’ notice of termination.
What are the future plans for Sarcos Robotics?
Sarcos Robotics aims to prioritize the development of their AI software platform. By decoupling AI and machine learning software from their robotic systems, they believe they can reach a broader market more quickly. This strategic shift will allow the company to run a leaner and more efficient business, reducing cash usage and positioning themselves for long-term profitability without the need for additional financing.