Monarch Tractor has laid off approximately 10% of its workforce in a restructuring effort to focus on non-agricultural customers, license its autonomous technology, and increase sales of its AI-powered farm management software, as reported by TechCrunch.
The Livermore, California-based autonomous electric tractor startup, which has raised $220 million since its establishment in 2018, let go of about 35 employees this week. Some employees were reportedly laid off without severance. This marks the second round of layoffs this year, following a cut of around 15% of the workforce in July.
During an interview with TechCrunch, CEO Praveen Penmesta explained that the decision to restructure came after a slower-than-expected third quarter, despite securing $133 million in funding in July from companies like Foxconn and Astanor. Penmesta mentioned that while he was unsure about severance packages for the laid-off employees, the company was assisting them on a case-by-case basis.
Penmesta referenced the recent decline in California’s vineyards, which were key customers for Monarch, as a major factor in the company exploring new opportunities beyond the agricultural sector. He highlighted the slowdown in agri-tech investments, prompting Monarch to shift its focus to non-agricultural ventures.
With 500 tractors already shipped, Monarch is now targeting a wider customer base by tapping into markets such as golf courses, solar farms, and municipalities. Additionally, the company is emphasizing the sale of its “WingspanAI” farm management software and is in discussions with other off-road vehicle companies to license its autonomous technology.
These strategic changes led to layoffs within Monarch’s engineering and operations teams, with the company relying more on contract-manufacturer Foxconn for operational positions at its Lordstown, Ohio facility.
“We are a startup,” Penmesta remarked. “You have to be agile, right?”
