Luminar Technologies, a prominent developer of lidar sensors for autonomous vehicles, has announced a new series of layoffs, marking another phase in its ongoing restructuring efforts. This decision comes shortly after the unexpected resignation of its founder and CEO, Austin Russell.
The company disclosed in a recent regulatory filing that it commenced additional layoffs on May 15, 2025. While the exact number of affected employees has not been specified, Luminar anticipates incurring cash charges between $4 million and $5 million due to these layoffs, with these costs expected to be realized in the second and third quarters of the year.
This move follows significant workforce reductions in 2024, during which Luminar reduced its staff by approximately 30%, resulting in 212 employees being laid off. These previous cuts were projected to cost the company between $4 million and $6 million in additional cash charges.
The recent layoffs coincide with a major leadership change at Luminar. Earlier this month, the company’s board announced the replacement of Austin Russell as CEO and board chair. The board stated that Russell’s resignation was the result of an ethics inquiry, though no further details were provided. Paul Ricci, former chairman and CEO of Nuance Communications, has been appointed as the new CEO.
In addition to Russell’s departure, board member Jun Hong Heng resigned shortly thereafter. According to a regulatory filing, Heng’s decision was not due to any disagreements with the company’s operations, policies, or practices.
Founded in 2012 by Austin Russell, Luminar Technologies has been a key player in the development of lidar technology, which is essential for enabling vehicles to perceive their surroundings in three dimensions—a critical component for autonomous driving systems. The company went public in 2021 through a merger with special purpose acquisition company Gores Metropoulos Inc., achieving a post-deal market valuation of $3.4 billion.
Despite its early successes, Luminar has faced financial challenges in recent years. In 2022, the company reported revenues of $40.7 million, an increase from $31.9 million in 2021. However, it also reported a net loss of $445.9 million for 2022, up from $238 million in 2021. These financial pressures have prompted the company to implement cost-saving measures, including workforce reductions and restructuring initiatives.
In May 2024, Luminar announced a 20% reduction in its workforce as part of a broader restructuring plan aimed at transitioning to an asset-light business model. This strategy involved outsourcing more of its production to partners, such as Taiwanese electronics manufacturer TPK Holding, to reduce costs and improve efficiency. The company also planned to sub-lease some of its facilities to decrease its global footprint.
By September 2024, the company had increased its workforce reduction to 30%, surpassing the initially planned 20%. This additional reduction was expected to result in further cash charges of $4 million to $6 million, primarily affecting the third and fourth quarters of 2024.
The autonomous vehicle industry has experienced a series of setbacks, with several companies scaling back their operations or exiting the market altogether. Earlier this year, Apple terminated its self-driving car project, resulting in 600 layoffs. Similarly, Cruise, a subsidiary of General Motors, reduced its workforce by 24% following an incident involving one of its driverless vehicles.
Luminar’s recent layoffs and leadership changes reflect the broader challenges facing the autonomous vehicle sector. As the company navigates this period of transition, it remains to be seen how these strategic decisions will impact its position in the market and its long-term viability.
