The layoffs, which are effective immediately, will impact about 140 people. Moreover, Luminar is severing connections with "the majority" of its contract employees.

In a letter published on Luminar's website, billionaire founder and CEO Austin Russell stated, "Today, we stand at the crossroads of two realities: the core of our business has never been stronger across technology, product, industrialization, and commercialization; yet at the same time the capital markets perception of our company has never been more challenging." "The cost structure and business model that helped us to attain this leadership position no longer meet the needs of the organization."

In the letter, Russell stated that Luminar will be able to "dramatically reduce" expenses, expedite the launch of products, and improve its profitability as a result of the restructure. The adjustments will lower operational expenses "by $50 million to $65 million on an annual basis," the business stated in a regulatory statement. Additionally, the business is "by sub-leasing portions or the entirety of certain facilities" shrinking its global presence.

According to spokeswoman Milin Mehta, Luminar will keep running its development, testing, and research and development center in Florida.

Luminar declared in April that it has started supplying Volvo with lidar sensors for integration into the premium SUV, the EX90. It also declared intentions to strengthen ties with TPK Holding, a Taiwanese contract manufacturer. Russell stated in his letter that TPK had "committed to an exclusive relationship with Luminar."