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Lidar sensor maker Luminar Technologies (NASDAQ:LAZR) disclosed on Friday it will lay off about 20% of its workforce amid a shift to a more "asset-light" model.
Shares of LAZR sunk 7.1% in afterhours trading.
As of December 31, 2023, excluding contractors, Luminar (LAZR) had almost 800 full-time employees. According to this figure, a 20% reduction in its headcount would impact 160 employees.
The company will also roll off the majority of its contractors.
Once pitched as the future of transportation, self-driving vehicles have lost much of their shine, hurting players like Luminar (LAZR). The company's lidar sensors help autonomous vehicles detect objects in their immediate environments.
Under the new model, Luminar (LAZR) will outsource more of its production to partners. The company added that Taiwan-based TPK will provide it with dedicated industrialization resources to lower the cost of its supply chains.
The company also plans to reduce its global footprint by "sub-leasing portions or the entirety of certain facilities."
Luminar (LAZR) expects the restructuring to result in savings of more than $400 million over the next five years, including $80 million in savings on an annual run rate basis.
It expects to incur $6 million to $8 million in expenses related to the workforce reduction.
"Our shift in operating model and actions today are not expected to materially affect our growth plan, and, rather, will enable an acceleration of our product timelines and scale," said billionaire founder and chief executive Austin Russell.
Last week, the company announced it had started shipping the next-generation of its lidar sensors to Volvo. Luminar (LAZR) also announced a partnership with auto software maker Applied Intuition to provide automakers with solutions to test their assisted driving systems.
In December, General Motors' (GM) embattled autonomous vehicles division Cruise laid off 900 workers. Earlier in the year, Apple (AAPL) canceled work on its self-driving electric vehicle project.