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TechCrunch
22-05-2025
- Business
- TechCrunch
Luminar secures up to $200M following CEO departure and layoffs
Lidar company Luminar reached a deal with Yorkville Advisors Global and another unnamed investor that could bring another $200 million into its coffers through the sale of convertible preferred stock over an 18-month period. The agreement, which was announced in a regulatory filing Wednesday, follows an abrupt change in leadership and layoffs. Earlier this month, Luminar's board replaced founder Austin Russell as CEO and board chair. Luminar's board appointed Paul Ricci to the role. Ricci is the former chairman and CEO of Nuance. The company also launched another round of layoffs — its third since spring 2024. Under the terms, Luminar will issue $35 million in convertible preferred stock to the investors. Luminar may issue additional tranches in amounts of up $35 million no more than every 60 days at a purchase price equal to 96% of the stated value of the convertible preferred stock. However, Luminar isn't under any obligation to issue additional stock. 'Today's transaction provides us with additional financial flexibility and further strengthens our balance sheet,' Luminar CFO Tom Fennimore said in a statement 'We've made substantial progress in extending our liquidity runway with our restructuring efforts, and the additional capital available to us under this facility provides us with another tool to realize our long-term value.' The company said proceeds from the initial $35 million issuance are expected to be used for general corporate purposes and debt retirement. Yorkville has offered these lifelines to other struggling publicly traded companies, a list that includes failed Lordstown Motors, Faraday Future, and the now bankrupt Canoo. Luminar was founded by Russell in 2012 when he was just a teenager. Luminar, and Russell, became Silicon Valley darlings when the lidar startup broke cover in April 2017 after operating for years in secrecy and at the height of the autonomous vehicle technology hype cycle. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW In 2021, Luminar merged with special purpose acquisition company Gores Metropoulos Inc., with a post-deal market valuation of $3.4 billion. Today, Luminar has a market cap of $179 million. Luminar raised $250 million prior to the SPAC announcement. Luminar has had some wins, but also restructured several times. Luminar cut about 30% of its workforce in 2024 via two rounds of layoffs. Some of those layoffs spilled into the first quarter of 2025. A total of 212 employees were laid off. In a regulatory filing earlier this month, the company said it began additional layoffs May 15. These new layoffs are expected to cost $4 million to $5 million in cash charges. These costs are expected to be incurred in the second and third quarters of this year.
The Verge
21-05-2025
- Automotive
- The Verge
Lidar maker Luminar lays off more workers following CEO exit
Luminar, a company that develops lidar systems for autonomous vehicles, started laying off workers just one day after its founder and CEO, Austin Russell, abruptly resigned. In a regulatory filing spotted by TechCrunch, the company said it began carrying out restructuring efforts on May 15th, which include a 'reduction in its workforce.' Last year, Luminar announced plans to cut 20 percent of its employees as it began outsourcing more of its production. Luminar later revealed in September that it had laid off around 30 percent of workers since the beginning of 2024, affecting 212 employees, according to TechCrunch. After launching in 2017, Luminar was pushed to the forefront of the autonomous vehicle industry as a top maker of lidar systems, a key technology that cars use to sense the shapes and distances of objects around them. Luminar has sold sensors to Mercedes-Benz, Volvo, Audi, Toyota Research Institute, Caterpillar, and even Tesla, which has dismissed LIDAR sensors in favor of traditional cameras. Luminar has encountered financial difficulties in recent months and was nearly delisted from the NASDAQ. The company doesn't say how many employees are affected by this most recent round of layoffs, but it expects to spend around $4 million to $5 million on its restructuring plans. Luminar appointed Paul Ricci as CEO after Russell stepped down last week, but Russell will remain on Luminar's board.
TechCrunch
21-05-2025
- Business
- TechCrunch
Luminar kicks off another round of layoffs amid CEO's sudden resignation
Luminar, the lidar company founded by recently replaced CEO Austin Russell, is going through another restructuring, according to a recent regulatory filing. This new round of layoffs, which the company did not provide figures for, follows extensive cuts to the workforce in 2024. Luminar cut about 30% of its workforce in 2024, a reduction that was expected to cost $4 million to $6 million in additional cash charges. Some of those layoffs spilled into the first quarter of 2025. A total of 212 employees were laid off. In its latest regulatory filing, the company said it began additional layoffs May 15. These new layoffs are expected to cost $4 million to $5 million in cash charges. These costs are expected to be incurred in the second and third quarters of this year. The layoffs are the latest complication for Luminar. Earlier this month, the company's board replaced Russell as CEO and board chair. The board issued a press release saying he resigned as the result of an ethics inquiry without providing any additional information. Luminar's board replaced Russell and appointed Paul Ricci to the role. Ricci is the former chairman and CEO of Nuance. A day after the leadership change was announced, board member Jun Hong Heng also resigned, according to a regulatory filing, which stated his decision was not due to any disagreements with the company on any matter relating to the company's operations, policies, or practices. The company has not responded to requests for comment. Russell became a billionaire after his lidar startup Luminar went public in 2021 after the company merged with special purpose acquisition company Gores Metropoulos Inc., with a post-deal market valuation of $3.4 billion. Luminar raised $250 million prior to the SPAC announcement. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW
Yahoo
20-05-2025
- Business
- Yahoo
Luminar (LAZR) Stock Plunges After Founder Exit and Wider-Than-Expected Loss
Shares of Luminar Technologies (NASDAQ:LAZR) slid about 7% in pre-market trading Thursday after the LiDAR firm posted mixed first-quarter results and said its founder will step down amid an internal ethics probe. Warning! GuruFocus has detected 8 Warning Signs with LAZR. Revenue for the quarter ended March 31 rose to $18.9 million, topping the $16.3 million average analyst estimate. However, the loss per share widened to $1.82, worse than the expected $1.63 loss. The company said Paul Ricci, former CEO of Nuance, will become chief executive around May 21, following the resignation of Austin Russell as CEO and board chair. Russell will remain on the board, and Luminar noted the inquiry does not affect its financials, according to a Thursday press release. The company reiterated its 2025 revenue target of 10% to 20% growth over the $75.4 million posted in 2024. Analysts are expecting closer to $86.4 million. Gross losses are projected to remain between $5 million and $10 million quarterly through the year. LiDAR shipments jumped 50% sequentially to about 6,000 units in Q1. Luminar expects to triple production volumes by year-end and continue scaling its "Halo" product with OEM partners. This article first appeared on GuruFocus.
Yahoo
15-05-2025
- Business
- Yahoo
Luminar (LAZR) Stock Plunges After Founder Exit and Wider-Than-Expected Loss
Shares of Luminar Technologies (NASDAQ:LAZR) slid about 7% in pre-market trading Thursday after the LiDAR firm posted mixed first-quarter results and said its founder will step down amid an internal ethics probe. Warning! GuruFocus has detected 8 Warning Signs with LAZR. Revenue for the quarter ended March 31 rose to $18.9 million, topping the $16.3 million average analyst estimate. However, the loss per share widened to $1.82, worse than the expected $1.63 loss. The company said Paul Ricci, former CEO of Nuance, will become chief executive around May 21, following the resignation of Austin Russell as CEO and board chair. Russell will remain on the board, and Luminar noted the inquiry does not affect its financials, according to a Thursday press release. The company reiterated its 2025 revenue target of 10% to 20% growth over the $75.4 million posted in 2024. Analysts are expecting closer to $86.4 million. Gross losses are projected to remain between $5 million and $10 million quarterly through the year. LiDAR shipments jumped 50% sequentially to about 6,000 units in Q1. Luminar expects to triple production volumes by year-end and continue scaling its "Halo" product with OEM partners. This article first appeared on GuruFocus. Sign in to access your portfolio
