Lidar company Luminar is reducing its workforce by 20% and will rely more on its contract manufacturing partner as part of a restructuring that will move the company toward a more “asset-light” business model, with the aim of increase production.
The job cuts will affect approximately 140 employees and will begin immediately. Luminar also cuts ties with “the majority” of its contract workers.
“Today, we find ourselves at the crossroads of two realities: the core of our business has never been stronger in terms of technology, product, industrialization and marketing; but at the same time, the financial markets’ perception of our company has never been more challenging,” billionaire founder and CEO Austin Russell said in a statement. letter published on the Luminar website. “(T)he business model and cost structure that allowed us to achieve this leadership position no longer meets the needs of the business.”
Russell wrote in the letter that the restructuring will allow Luminar to bring its products to market faster, “significantly reduce” costs and better prepare the company for profitability. The company said in a regulatory statement deposit that the changes will reduce operating costs “by $50 million to $65 million on an annual basis.” The company is also reducing its global footprint “by subleasing part or all of certain facilities.”
Luminar will continue to operate its Florida facilities, which are used for development, testing and research and development, according to spokesperson Milin Mehta.
Luminar announced in April that it had begun shipping production lidar sensors to Volvo for integration into the automaker’s EX90 luxury SUV. It also announced plans to deepen its relationship with Taiwanese contract manufacturing company TPK Holding. TPK has “committed to an exclusive relationship with Luminar,” Russell wrote in his letter.
