Lidar manufacturer Luminar has warned its shareholders that it will run out of cash by early 2026. To help conserve funds, the company has announced a 25 percent reduction of its workforce. This marks the second round of layoffs for the company this year, according to a regulatory filing on Friday.
The exact number of employees affected is not immediately clear. Luminar began the year with approximately 580 employees, but the company did not specify the size of the layoff that occurred earlier this year. The company did not immediately respond to a request for comment.
In a separate announcement, Luminar stated that its Chief Financial Officer, Thomas Fennimore, will be stepping down on November 13 to pursue other career opportunities. Luminar clarified that Fennimore’s departure is not the result of any disagreement concerning the company’s finances or its auditors.
These developments occur as founder Austin Russell, who was replaced as CEO in May following an unspecified ethics inquiry by the board of directors’ audit committee, is currently attempting to buy the company. This potential buyout was reportedly encouraged by at least some members of the board.
Luminar’s financial struggles are partly due to selling fewer lidar sensors to Volvo, which was expected to be a major customer. In August, Fennimore stated that the company was consequently selling these sensors at a lower cost than it takes to manufacture them.
As of October 24, Luminar reported having 72 million dollars in cash and marketable securities. Without additional fundraising, the company’s current spending rate indicates it could run out of money as early as the first quarter of next year, or it could breach the terms of certain loan agreements.
The company also revealed on Friday that it had already skipped required quarterly interest payments on certain loans that were due on October 15. The lenders have agreed to give Luminar until November 6 to make these payments before taking any action.
Luminar is scheduled to report its third-quarter financial results in two weeks. However, the company disclosed on Friday that it expects to report approximately 18 million dollars in revenue and a debt of 429 million dollars.