Luminar Technologies announced a 25% reduction in its workforce, a move that will cost the company between $2.0 million and $3.0 million in severance and related charges and is effective October 29, 2025.
Thomas Fennimore resigned as chief financial officer, with his departure effective November 13, 2025.
The company warned that its liquidity position is under strain. As of October 24, 2025, Luminar held $72 million in cash and marketable securities, while its total debt stood at $429 million. The firm missed an interest payment on its 2L Notes due October 15, 2025, and lenders granted a forbearance until November 6, 2025. Management cautioned that without additional cash, the company may not meet its operating and liquidity needs during the first quarter of 2026 and could breach minimum liquidity covenants before the end of Q4 2025.
Luminar expects third‑quarter revenue of $18 million to $19 million. In comparison, revenue in Q3 2023 was $17 million, up 33% year‑over‑year, while Q2 2025 revenue was $15.6 million, down 5% year‑over‑year. Cash balances have fallen sharply: $72 million on October 24, 2025 versus $74 million on September 30, 2025, and $365.8 million on June 30, 2023. The company’s debt has also been reduced through a restructuring in August 2024 that cut principal by $148 million.
Strategic context includes a buyout pursuit by founder Austin Russell, with Russell AI Labs submitting non‑binding proposals. Luminar is evaluating a sale, capital raise, or restructuring. The company’s key customer, Volvo, has decided to make its Iris LiDAR optional on the EX90 and ES90 models starting April 2026 and to defer LiDAR decisions for future models to 2029, a move that will affect future revenue streams. Luminar has also received an SEC subpoena related to a potential securities law investigation.
Operational context shows the company has been operating at negative gross margins and net losses, with a high cash burn rate. A prior workforce reduction of 30% in 2024 eliminated 212 employees. Management has stated that substantial doubt exists about the company’s ability to continue as a going concern.
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