AutoBeta(AutoBeta.net)09/26 Report--

Recently, Luminar Technologies, a manufacturer of automotive lidar sensors, revealed that it has laid off about 30 per cent of its staff since the beginning of this year, according to media reports. It is worth mentioning that this figure is higher than the previously officially announced layoffs of 20%.

According to officials, most of the layoffs are in non-technical positions in general administration and logistics departments. Officials say the downsizing of staff will save Luminar about $80 million in cash. However, it also said that the layoffs will also bring some additional cash expenses to the company, which are expected to be about $4 million to $6 million, mainly employee severance payments and related staff costs, which will be incurred in the third and fourth quarters of this year.

As for the layoffs, officials say the layoffs will not adversely affect Luminar's technical milestones, customer projects or product delivery. instead, they will improve cash flow and gradually reduce total costs, helping Luminar to become profitable. At the same time, it is pointed out that Luminar is facing many development opportunities, the company has successfully established a technology platform and made the necessary investment, and has been put into mass production, and the first batch of cars equipped with Luminar lidar sensors are being delivered to dealers and consumers around the world.

In May this year, Luminar announced that it plans to cut about 20% of its workforce in order to further optimize its operations and make a comprehensive transformation, which is expected to be completed by the end of this year. In addition, it is also revealed that the subsequent transition to the "light asset" business model, the manufacturing of products will be outsourced to partners. Officials point out that the outsourcing of production can reduce the cost of industrial production, while at the same time improving profitability and further speeding up the launch of the next generation of products.

Data show: Luminar is a lidar company, the scope of business is mainly for automakers to test its driving assistance system and other services. It has cooperated with Volvo, Mercedes-Benz, SAIC, Audi and other auto companies. Luminar landed on NASDAQ in 2020 and became the most valuable lidar company in the United States after listing. However, the advantage of lidar has also been affected by the increase of competitors and the emergence of alternatives. Luminar recorded a net loss of $571.3 million on a $69.7 million revenue last year, according to data. Compared with a net loss of $445.9 million in 2022, there is an increase of 125.4 million yuan. Against a backdrop of rising losses, Luminar's layoffs are understandable.

In fact, with the rapid development of new energy vehicles, not only Luminar is facing the dilemma of weak product demand. Many auto parts giants are also facing poor sales and net profit losses, and have to start layoffs in order to survive. Since the beginning of this year, a number of auto parts giants have launched major layoffs. In early January, Bosch and Valeo announced that they would start layoffs in order to cut costs and improve competitiveness.

Of course, in addition to the above-mentioned giants to start layoffs, many car companies have also started layoffs this year. For example, on March 23rd, the auto giant Stellantis Group announced that it would cut 400 jobs in view of the unprecedented uncertainty and global competitive pressure facing the auto industry. In addition, the head electric car company Tesla, its CEO Elon Musk also issued a full letter in April this year, announcing that Tesla will lay off 10% of its staff worldwide. In recent days, Volkswagen China has also been revealed that it plans to lay off staff. There are media reports that Volkswagen will cut hundreds of jobs in China. In response to the news, the official responded that the move was part of its global cost reduction.

Generally speaking, in the context of fierce competition and declining market demand. In addition to the auto parts companies affected, even automakers are under a lot of pressure. Layoffs have become an effective measure to cut costs and improve efficiency. For this reason, many automobile manufacturers choose to lay off staff to reduce costs and increase efficiency in response to the cold winter of the industry. But in the end, whether it can survive in the new round of competition, how to change to keep up with is the key.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat