Luminar’s (NASDAQ:LAZR) shares are down about 3% and trending on social media and business news websites today. The company, which specializes in developing lidar sensors, announced that it would cut about 20% of its workforce as part of a restructuring plan. The Luminar layoffs were first reported by Barron’s, which obtained a copy of a company memo detailing the move.
Additional Details About the Luminar Layoffs
Approximately 700 individuals are employed by Luminar, so about 140 of its workers will lose their positions.
In the memo announcing the job cuts, CEO Austin Russell appeared to blame the layoffs on the company’s stock price, as he wrote that “the capital markets perception of our company has never been more challenging.” On the other hand, the CEO contended that “the core of our business has never been stronger across technology, product, industrialization, and commercialization.”
The huge declines in the company’s stock, which has tumbled 74% in the last 12 months, has made it more difficult for the firm to obtain funds, Barron’s explained.
A Change in Strategy Amid a Mixed Performance
Going forward, Russell reported that the firm would increasingly rely on other firms to manufacture its products.
Meanwhile, the company’s overall performance has been mixed. On the positive side, Luminar recently began shipping lidar sensors to Volvo (OTCMKTS:VLVLY). The Swedish automaker intends to use the products to enable advanced driver assistance systems (ADAS) in its EX90 EVs. Moreover, Luminar last month reported that its backlog had reached an impressive $4 billion.
On the negative side, the firm generated a net loss of $571.3 million last year. That was worse than its 2022 net loss of $446 million.
Meanwhile, the outlook for lidar appears to be mixed, with General Motors (NYSE:GM) and Volvo increasingly utilizing the technology and Tesla (NASDAQ:TSLA) and Chinese electric vehicle maker XPeng (NASDAQ:XPEV) moving away from it.
On the date of publication, Larry Ramer held a long position in XPEV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
