Autonomous vehicle company May Mobility Inc. is scaling back its expansion plans in Ann Arbor, Michigan.

The Ann Arbor-based company has reduced its plans for new jobs to a third of what it announced in April 2023, according to the Michigan Economic Development Corp. May Mobility had initially committed to investing $18 million and creating 300 new jobs at its headquarters. Now, the company plans to add 100 jobs by the end of October 2026.

In response, the Michigan Strategic Fund board voted Tuesday to adjust May Mobility's performance-based grant, reducing it from $3 million to $1 million. The company's deadlines for reaching its milestones were also extended under the Michigan Business Development Program.

"May Mobility is not downsizing, rather we've realigned our workforce to better meet the evolving needs of our business as we expand our autonomous vehicle services," Tom Tang, May Mobility's chief people officer, said in an email Tuesday.

"While some positions were phased out earlier in the year, we are actively adding roles in key areas to support our growth. In fact, we are hiring right now. We have 19 positions listed and will continue to open new roles that will help us meet our goals."

According to an MEDC briefing memo, the company reached out to the agency requesting an amendment, saying it would not be able to meet the original requirements of the grant.

"The company has revamped their business plan, downsizing expectations related to their Autonomous Vehicle Technology growth," the memo read. "If this amendment request is approved, the Company is confident they will be able to meet the requirements of the grant."

The move on Tuesday comes after May Mobility said in February that it would reduce its workforce by about 13%. About 40 employees were ultimately impacted. The company employs 173 people in Michigan and 278 companywide, Tang said.

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