Israeli laser (LiDAR) sensor developer Innoviz Technologies Ltd. (Nasdaq: INVZ) announced today that it is laying off dozens of employees, comprising 13% of its workforce. The company's LiDAR sensor are a vital device in the transition to autonomous cars.
Innoviz has major supply contracts with at least two carmakers: BMW Group, which has begun to install Innoviz's sensors in its serial production, including the BMW series 7; and Volkwagen Group, which will install the Innoviz LiDAR sensor in vehicles with high levels of autonomy over the next two years. These contracts have yet to generate significant revenue for the company.
Innoviz said, "As a result of the strategic realignment actions, Innoviz plans to decrease its employee headcount by approximately 13% and expects to reduce its 2024 planned cash outlays by $22-24 million on an annualized basis. Cash savings are expected to begin in the first quarter of 2024 with run rate savings expected to be achieved by the end of the second quarter of 2024. Cash costs associated with the strategic actions are expected to be minimal."
Innoviz Co-Founder and CEO Omer Keilaf said, "Innoviz is at an important point in its growth trajectory. The company is in a market capture window that has the potential to determine the market share of the LiDAR industry for the next decade or more. Today's actions are the result of a thoughtful process to optimize the Company's cost structure, increase our competitive positioning, and extend our cash runway through the expected remainder of the market capture window. Looking ahead, we remain confident in our ability to achieve our long-term goals and become a market leader in automotive LiDAR."
Innoviz's share price rose 3.64% on Nasdaq yesterday to $1.71, giving a market cap of $282 million.
Published by Globes, Israel business news - en.globes.co.il - on February 1, 2024.
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