The layoffs affected around 35 employees, some of whom claim they were let go without severance. The company, which has raised $220 million since its inception in 2018, has been hit by the recent crash of California's vineyards, a major portion of its early customers, and a slowdown in agri-tech investing. CEO Praveen Penmesta stated that the company is trying to assist laid-off workers on a case-by-case basis and is relying more on contract-manufacturer Foxconn for operational roles.
Key takeaways:
- Monarch Tractor has laid off around 10% of its workforce as part of a restructuring to prioritize non-agricultural customers, license its autonomous technology, and boost sales of its AI-powered farm management software.
- The company has faced a slower-than-expected third quarter and despite raising $133 million in July, it decided to restructure.
- Monarch is now focusing on expanding its customer base beyond agriculture to golf courses, solar farms, and municipalities, and is also focusing on selling its “WingspanAI” farm management software.
- The company is also in talks with other “off-road” vehicle companies to license its autonomous technology and is leaning more on contract-manufacturer Foxconn for operational roles.