Luminar is cutting 20% ​​of its staff and outsourcing lidar production

Lidar company Luminar is reducing its workforce by 20% and will rely more heavily on its contract manufacturing partner as it looks to scale production as part of a restructuring that will move the company to an “asset-light” business model.

The cuts affect around 140 employees and begin immediately. Luminar is also cutting ties with “the majority” of its contract workers.

“Today we stand at the crossroads of two realities: the core of our business has never been stronger in terms of technology, product, industrialization and commercialization; At the same time, the capital markets’ perception of our company has never been more challenging,” billionaire founder and CEO Austin Russell said in a statement letter posted on the Luminar website. “[T]The business model and cost structure that allowed us to achieve this leadership position no longer met the needs of the company.”

Russell wrote in the letter that the restructuring will allow Luminar to bring products to market more quickly, “drastically reduce costs” and better position the company for profitability. The company announced this in a regulation submission that the changes will reduce operating costs “by $50 million to $65 million per year.” The company is also reducing its global footprint “by subleasing portions or all of certain facilities.”

Luminar will continue to operate its Florida facility, which will be used for development, testing and research and development, according to spokesman Milin Mehta.

Luminar announced in April that it had begun shipping standard lidar sensors to Volvo to be installed in the automaker’s EX90 luxury SUV. The company also announced plans to deepen its relationship with Taiwanese contract manufacturing company TPK Holding. TPK is “committed to an exclusive relationship with Luminar,” Russell wrote in his letter.

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