Luminar Technologies, a company that specializes in lidar sensors for autonomous driving systems, plans to lay off 20% of its workforce as part of a larger production process restructuring.
Luminar Technologies' Restructuring
Luminar is also exploring the option of sub-leasing some of its facilities, either in parts or entirely, to reduce its global footprint as part of its restructuring.
The company recently announced shipments of its next-generation laser sensors to Volvo and stated that it will shift towards an asset-light business model, outsourcing more of its production to partners. At least 147 positions will be eliminated. According to LinkedIn, Luminar has at least 730 employees across its locations in the United States, Germany, Sweden, India, and China.
Luminar CEO Austin Russell expressed difficulty in letting go of long-time team members and ending the majority of contractors who supported them to start production. Affected employees have been informed about roles that are no longer needed.
Luminar Technologies' Prominence
Luminar gained prominence alongside the tech industry's push for self-driving cars as the future of personal transportation. The company manufactures lidar, an essential component in autonomous driving that utilizes near-infrared light to perceive objects' shapes and distances, enabling autonomous vehicles to detect other objects on the road, such as cars, pedestrians, and cyclists, independently of GPS or network connections.
The company introduced its latest lidar sensor in April, Halo, and partnered with auto-software maker Applied Intuition to assist car manufacturers in testing their assisted-driving systems.
However, due to the declining appeal of autonomous vehicles, companies in the support industry currently face challenges, with Luminar reporting a net loss of $571.3 million for 2023, compared to $445.9 million in 2022, despite an increase in revenue from $40.7 million to $69.7 million during the same period.
Luminar is set to announce its first-quarter earnings next week.
Declining Autonomous Vehicles' Presence
Luminar will delegate its industrialization process to its current partners as part of its effort to cut costs. The company has secured agreements to supply its lidar technology to several major players, including Mercedes-Benz, Volvo, Audi, Toyota Research Institute, Intel's Mobileye, and Airbus, as well as Chinese firms SAIC and Pony.ai. Russell mentioned that Luminar would depend on Taiwanese electronics manufacturer TPK for significant dedicated industrialization support. The restructuring is projected to generate $400 million in savings for the company over the next five years, with an annual run basis savings of $80 million.
The layoffs at Luminar add to the series of setbacks faced by the struggling autonomous vehicle industry. Apple terminated its self-driving car project earlier this year, laying off 600 of its employees. Cruise, a subsidiary of General Motors, downsized its workforce by 24% following an incident in which a pedestrian was injured by one of its driverless vehicles. Aurora, focusing on autonomous trucks, reduced its staff by 3%.
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