Luminar Restructuring Includes 20% Workforce Cut
ORLANDO, Fla., May 7, 2024 — Lidar company Luminar Technologies intends to implement cost-cutting measures, including outsourcing of industrialization to existing partners and reduction of its workforce by approximately 20%. Company founder and CEO Austin Russell issued a statement announcing the moves on Friday.
According to the statement, the transition to a “more ‘asset-light’ model” will enable the company to accelerate commercialization and scaling, boost profitability, and reduce overhead cost related to industrialization.
“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,” Russell said.
In addition to outsourcing more of its industrialization process and reducing its workforce, the company is taking measures to streamline other costs by implementing changes to its organizational structure, realigning its employee base to R&D for product development, and renewing the company’s strategic equity program for financial flexibility, the statement said.
According to Russell, the company is expecting savings of more than $400 million over the next five years. In the near term, the company expects to realize more than $80 million in savings on an annual run rate basis.
According to the statement, the company will issue further updates in the coming weeks. Luminar reported a higher than expected gross loss in Q4 of 2023, which it attributed in part to industrialization and development costs.
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