Luminar reduces workforce by 20% and shifts lidar production to outsourcing

Luminar, a leading lidar company, is making significant changes to its business model in order to scale production and increase profitability. The company has announced a restructuring plan that includes slashing its workforce by 20%, affecting around 140 employees, and cutting ties with the majority of its contract workers.

In a letter posted on Luminar’s website, billionaire founder and CEO Austin Russell explained that the company is shifting to a more “asset-light” business model to better align with market demands. The restructuring will allow Luminar to bring products to market faster, reduce costs, and position the company for long-term success.

As part of the restructuring, Luminar will reduce operating costs by $50 million to $65 million annually and streamline its global footprint by sub-leasing certain facilities. However, the company will continue to operate its Florida facility, which is crucial for development, testing, and research and development.

Despite the workforce reductions, Luminar remains committed to its partnership with Volvo, with whom it has begun shipping production lidar sensors for the automaker’s EX90 luxury SUV. Additionally, the company plans to deepen its relationship with Taiwanese contract manufacturing company TPK Holding, which has committed to an exclusive partnership with Luminar.

Overall, the restructuring at Luminar reflects the company’s efforts to adapt to changing market conditions and position itself for future growth and success in the lidar industry.