Luminar cuts 20% of staff and outsources lidar production

Luminar, a lidar company, is reducing its workforce by 20% and will rely more on its contract manufacturing partner. This restructuring move will transition the company towards a leaner, "asset-light" business model, enabling them to increase production more efficiently.

The cuts will affect around 140 employees, and are starting 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 across technology, product, industrialization, and commercialization; yet 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 letter posted to Luminar’s website. “The business model and cost structure that enabled us to achieve this leadership position no longer fit the needs of the company.”

In the letter, Russell mentioned that the restructuring would enable Luminar to bring products to market quicker, significantly decrease expenses, and enhance the company's readiness for profitability. According to a regulatory filing, these modifications are expected to lower operating costs by $50 million to $65 million annually. Furthermore, the company is minimizing its global presence by sub-leasing parts or the entirety of specific facilities.

Spokesperson Milin Mehta has stated that Luminar intends to keep running its Florida facility, where they carry out development, testing, and research and development activities.

In April, Luminar disclosed that they had initiated the shipment of their production lidar sensors to Volvo for integration into the luxury SUV EX90. Additionally, they revealed their intentions to further strengthen their partnership with the Taiwanese contract manufacturing company, TPK Holding. According to Russell's letter, TPK has agreed to an exclusive association with Luminar.