The lidar sensor business is experiencing the same kinds of disruptions affecting other major tech companies, from dwindling cash reserves to layoffs and worse.
In one example, Quanergy Systems in Sunnyvale, California, filed for bankruptcy reorganization on Tuesday, which will result in a loss of 72 jobs beginning in early February. The company plans to continue operating as it pursues a sale of the business, it said in a press release.
Quanergy also said Kevin Kennedy will retire as CEO on Dec. 31, but will continue as a non-executive board chairman.
In another example, lidar rivals Ouster and Velodyne decided in November to merge, ending a legal battle. Consolidation among companies that make lidar for future autonomous vehicles has been expected with a crowded field of relatively small companies.
Ouster of San Francisco agreed to buy Velodyne Lidar of San Jose, California, for $212 million in stock with both calling it a “merger of equals.” Ouster co-founder Angus Pacala, will run the combined company as CEO. Ironically, he had co-founded Quanergy as engineering chief before launching Ouster in 2015.
Pacala told the Silicon Valley Business Journal at the time of the merger “there are too many companies in this industry and I am incredibly happy to be the first company in the industry to lead the way with consolidation. It’s necessary for the future of lidar and a good thing for the industry.”
The Business Journal in early November tracked eight Bay Area lidar makers that saw stock prices fall by more than 50% since going public.
In addition to Quanergy, Velodyne and Ouster, the publication listed Innoviz Technologies of Santa Clara, Luminar Technologies of Palo Alto, Cepton of San Jose, Aveva Technologies of Mountain View, and AEye of Dublin.