Luminar Technologies, a leading lidar sensor maker, plans to cut 20% of its workers as part of a reorganization strategy for the current year.

Luminar's restructuring includes sub-leasing facilities to reduce the company's global presence. Per December data, the company employed approximately 800 full-time employees in the U.S., Germany, Sweden, India, and China.

According to Reuters, Luminar is being reorganized to become "asset-light" and increase output. Effective immediately, it will cut 20% of its employment, affecting 140 people. It is also cutting links with "the majority" of its contract workers.

Luminar founder and CEO Austin Russell wrote on the company's website about market perceptions and the necessity of adapting the business strategy, as reported by TechCrunch. He stated that the restructuring will help Luminar produce products faster, lower expenses, and increase profitability. Operating expenses are estimated to drop by $50 million to $65 million a year due to the sub-leasing of buildings and global footprint modifications.

Milin Mehta, Luminar's spokesperson, noted the firm's Florida facility will continue development, testing, and R&D despite these changes.

Russell's letter also revealed plans to deepen its partnership with Taiwanese contract maker TPK Holding, which has committed to an exclusive connection with Luminar.

In April, Luminar revealed that it is completing lidar sensor orders as Volvo prepares to produce its EX90 electric vehicles. Volvo is the "first global consumer vehicle to standardize this technology," according to to the firm.