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Monarch Tractor has laid off about 10% of its workforce as part of a restructuring that will see it prioritize non-agricultural customers, license its autonomous technology, and increase sales of its AI-powered farm management software, TechCrunch has learned.
About 35 employees were laid off this week by the Livermore, California-based independent electric tractor company that has raised a total of $220 million since its founding in 2018. Some Monarch workers told TechCrunch that they were let go without severance. It’s the second cut this year. Monarch previously laid off about 15% of its workforce in July.
CEO Praveen Benmista told TechCrunch in an interview that the company decided to restructure after a slower-than-expected third quarter, and despite raising $133 million in July from the likes of Foxconn and agri-food tech influencer Astanor. Benmesta said he is not sure whether employees will be laid off without severance pay, but the company is trying to help laid-off workers on a case-by-case basis.
“It all happened very quickly,” Benmista said, referring to what happened. The recent collapse of California vineyardswhich made up the bulk of Monarch’s early customers. This development, combined with the ongoing decline in investment in agricultural technology, has left Benmesta and his team looking for other options.
“The industry has slowed down due to the acquisition of new equipment and new solutions, especially in the core agricultural sectors,” Benmesta said. “But in the meantime, as a platform company, we also have some very exciting non-agricultural opportunities that are starting to emerge because of our success in Ag.”
He said the company, which has shipped 500 tractors so far, is now focusing on expanding its customer base in several ways. It is expanding beyond agricultural customers to golf courses, solar farms, and even municipalities. It is also focusing more on selling its “WingspanAI” farm management software. Monarch is in talks with other “off-road” vehicle companies to license its autonomous technology.
These changes inspired cuts that affected, among other things, some of Monarch’s engineering and operations team, Penmesta said. He also said Monarch is relying more on contract manufacturer Foxconn, which builds tractors at its Lordstown, Ohio, facility, for operational roles.
“We are a startup,” Benmesta said. “You have to be agile, don’t you?”
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