Luminar lays off 20% of staff and outsources lidar production

Lidar Luminar is reducing its workforce by 20% and will rely more on its contract manufacturing partner as part of a restructuring that may shift the corporate to a more “asset-conserving” business model because it seeks to scale production.

The cuts will affect roughly 140 employees and will take effect immediately. Luminar can be cutting ties with “most” of its contract employees.

“Today we stand at the intersection of two realities: the core of our business has never been stronger in technology, products, 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 speech letter posted on the Luminar website. “The business model and cost structure that enabled us to achieve this leadership position no longer meet the needs of the company.”

Russell wrote within the letter that the restructuring will enable Luminar to bring products to market faster, “drastically reduce” costs and ensure improved profitability for the corporate. The company said in its regulatory filing sawing that the changes would scale back operating costs “by $50 million to $65 million annually.” The company can be limiting its global reach “by subleasing some or all of certain facilities.”

Luminar will proceed to operate its Florida facility, which is used for development, testing and research and development purposes, in keeping with spokesman Milin Mehta.

In April, Luminar announced that it had begun shipping volume production lidar sensors to Volvo for installation within 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 partnership with Luminar,” Russell wrote in his letter.