Luminar Technologies, a LiDAR manufacturer, announced plans to lay off 20% of its workforce (about 140 employees) immediately as part of a restructuring strategy to adopt a more "asset-light" business model and boost production. The majority of its contract workers are included in the layoffs.

Through the restructuring, the company aims to streamline operations, reduce costs by USD 50 million–65 million annually, and facilitate faster product launches.

The company is also planning to sub-lease certain facilities to reduce its footprint. However, Luminar will maintain its Florida facility for R&D while deepening its partnership with Taiwanese contract manufacturer TPK Holding.

Analyst QuickTake: Even though autonomous vehicles and ADAS are considered promising areas of growth for LiDAR, since these technologies are still in the development stages, they may not generate much revenue for LiDAR companies in the near term. Luminar, along with peer LiDAR companies such as Innoviz Technologies and Ouster , also cut their workforces to restructure operations for a better financial position.