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Luminar cuts 20% of staff and outsources lidar production | TechCrunch

Luminar cuts 20% of staff and outsources lidar production | TechCrunch

Lidar company Luminar is cutting its workforce by 20% and will lean heavily on its contract manufacturing partners as part of a restructuring that will move the company to a more “asset-light” business model, as it aims to Production has to scale.

The cuts will affect approximately 140 employees, and are effective 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 technology, products, manufacturing, and commercialization. Yet at the same time the capital market's perception of our company is more challenging than ever.” No longer,” billionaire founder and CEO Austin Russell said in a statement. Letter Posted on Luminar's website. “(T)he business model and cost structure that enabled us to achieve this leadership position is no longer aligned with the company's needs.”

Russell wrote in the letter that the restructuring will enable Luminar to bring products to market faster, “dramatically reduce” costs, and better position the company for profitability. The company said in a regulatory Filing that the changes would reduce operating expenses “by $50 million to $65 million on an annual basis.” The company is also shrinking its global footprint by “subleasing portions or the entirety of some facilities.”

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

Luminar announced in April that it had begun shipping production-leading sensors to Volvo to be built 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.

(Tags translation) Austin Russell

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