LiDAR maker Luminar cuts 25% of workforce amid cash crunch
What's the story
LiDAR manufacturer Luminar has warned its shareholders about an impending cash shortage in early 2026. The company has also announced a 25% workforce reduction to stem the financial losses. This is Luminar's second layoff this year, according to a regulatory filing on Friday. The exact number of employees impacted by this decision remains unclear, as the company did not specify the size of the previous layoff earlier this year.
Executive exit
CFO to leave the company on November 13
Along with the job cuts, Luminar also announced that its Chief Financial Officer (CFO), Thomas Fennimore, will be leaving the company on November 13. The company said Fennimore's departure is "not the result of any disagreement" over its finances or with auditors. He is leaving to "pursue other career opportunities," according to a statement from Luminar.
Financial outlook
Financial struggles due to low sales
Luminar has been struggling financially, partly due to lower sales of LiDAR sensors to Volvo, a key customer. In August, Fennimore had revealed that Luminar was selling these sensors at a price lower than their production cost. The company reported having $72 million in cash and marketable securities as of October 24. However, without further fundraising efforts, Luminar could run out of money by early next year or violate certain loan covenants due to its current burn rate.
Payment delay
Missed interest payments and potential buyout talks
On Friday, Luminar revealed that it had missed mandatory quarterly interest payments on some loans due October 15. The lenders have given the company until November 6 to make these payments before taking any action. Despite the financial woes, Luminar's founder, Austin Russell, is in talks to buy the company with support from some board members.