Lidar firm Luminar is slashing its workforce by 20% and can lean tougher on its contract manufacturing accomplice as a part of a restructuring that can shift the corporate to a extra “asset-light” enterprise mannequin, because it goals to scale manufacturing.
The cuts will have an effect on round 140 staff, and are beginning instantly. Luminar can also be chopping ties with “the bulk” of its contract employees.
“Right now, we stand on the crossroads of two realities: the core of our enterprise has by no means been stronger throughout expertise, product, industrialization, and commercialization; but on the identical time the capital markets notion of our firm has by no means been more difficult,” billionaire founder and CEO Austin Russell stated in a letter posted to Luminar’s web site. “[T]he enterprise mannequin and value construction that enabled us to attain this management place now not match the wants of the corporate.”
Russell wrote within the letter that the restructuring will make it attainable for Luminar to get merchandise to market sooner, “drastically scale back” prices, and set the corporate up higher for profitability. The corporate stated in a regulatory submitting that the adjustments will scale back working prices “by $50 million to $65 million on an annual foundation.” The corporate can also be decreasing its world footprint “by sub-leasing parts or the whole lot of sure amenities.”
Luminar will proceed to function its Florida facility, which is used for growth, testing and analysis and growth, in accordance with spokesperson Milin Mehta.
Luminar introduced in April that it had begun transport manufacturing lidar sensors to Volvo to be constructed into the automaker’s EX90 luxurious SUV. It additionally introduced plans to deepen its relationship with Taiwanese contract manufacturing firm TPK Holding. TPK has “dedicated to an unique relationship with Luminar,” Russell wrote in his letter.
