Lidar technology maker Luminar has warned shareholders that it may exhaust its cash reserves by early 2026, prompting the company to announce a 25% workforce reduction in a bid to stay afloat. The move, disclosed in a Friday regulatory filing, marks Luminar’s second round of layoffs this year. The company, which began 2025 with roughly 580 employees, did not disclose how many workers will be affected. In the same filing, Luminar revealed that Chief Financial Officer Thomas Fennimore will step down on November 13 to “pursue other opportunities,” noting that his exit is not tied to any disputes over financial matters or audits.
The crisis comes as Luminar’s founder, Austin Russell, who was replaced as CEO in May following an ethics inquiry, pursues a bid to buy back the company — a move reportedly supported by some board members. Luminar’s financial struggles have been exacerbated by weak sales to Volvo, a key customer that was expected to drive major growth. In August, the company admitted that it was selling its lidar sensors below production cost, underscoring deeper profitability challenges amid declining demand and escalating operational expenses.
According to Luminar’s latest financial disclosures, the company had just $72 million in cash and marketable securities as of October 24. With its current spending rate, Luminar could run out of funds as early as the first quarter of 2026 or potentially breach loan covenants. The firm also confirmed that it missed required quarterly interest payments on certain loans due October 15 but received a temporary reprieve from lenders until November 6 to make the payments and avoid default.
Luminar expects to report approximately $18 million in revenue and $429 million in debt when it releases its third-quarter results later this month. The company’s deteriorating financial position, executive turnover, and ongoing leadership uncertainty have raised fresh doubts about its future viability. Analysts say unless Luminar secures new financing or executes a strategic buyout swiftly, it risks becoming another casualty in the highly competitive autonomous vehicle sensor market