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 be reducing ties with “the bulk” of its contract staff.
“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 mentioned in a letter posted to Luminar’s web site. “[T]he enterprise mannequin and price construction that enabled us to attain this management place not match the wants of the corporate.”
Russell wrote within the letter that the restructuring will make it doable for Luminar to get merchandise to market sooner, “drastically cut back” prices, and set the corporate up higher for profitability. The corporate mentioned in a regulatory submitting that the modifications will cut back working prices “by $50 million to $65 million on an annual foundation.” The corporate can be lowering 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 keeping 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.
