Monarch Tractor has undertaken a restructuring effort, resulting in the reduction of approximately 10% of its workforce, as it shifts focus to serve non-agricultural clients, licenses its autonomous technology, and boosts revenue from its AI-driven farm management software, according to TechCrunch sources.
The number of staff at the Livermore, California-based startup behind autonomous electric tractors dropped to 35 this week, a total decline since its founding in 2018 when it had secured $220 million in funding. Monarch employees reportedly dismissed without severance packages, citing TechCrunch sources. Monarch’s fortunes have taken a turn for the worse, with a 15% workforce reduction earlier this year in July – now it’s experiencing a second consecutive downturn.
Astanor Ventures’ CEO, Praveen Penmasta, told TechCrunch in an exclusive interview that the company has decided to undergo restructuring following a disappointing third-quarter performance. The move is expected to have significant implications, particularly given the involvement of major partners such as Foxconn and Astanor itself, a prominent agri-food tech organization. Although Penmesta expressed uncertainty about whether departing staff received proper severance packages, he did indicate that the corporation is actively working to provide individualized support to those who have been laid off.
Penmesta noted that all of this unfolded relatively quickly, specifically citing the initial client base that comprised a significant proportion of Monarch’s early customers. As that growth began to slow down, coupled with a persistent retrenchment in agri-tech investment, Penmesta and his team were faced with distinct alternatives.
“The company is currently experiencing a slowdown in its adoption of cutting-edge technology and innovative solutions, primarily in its core agricultural divisions,” Penmesta noted. “In the interim, our platform’s success in agriculture has given rise to a plethora of exciting non-agricultural opportunities, which we are eager to explore.”
The company, which has already shipped 500 tractors, is now focused on expanding its customer base through multiple channels. The company’s scope is expanding beyond traditional agricultural clients to encompass a diverse range of industries, including golf programs, solar farms, and municipalities. The company is further emphasizing the promotion of its innovative “WingspanAI” farm management software solution. Monarch is engaged in licensing discussions with various off-road vehicle manufacturers, leveraging its autonomous technology prowess.
The changes implemented by Penmesta received acclaim from the cuts that were successful, with criticism also directed at certain aspects of Monarch’s engineering and operations teams. Monarch says it’s relying more heavily on Foxconn, the contract manufacturer responsible for building tractors at its Lordstown, Ohio facility, to take on operational roles.
“We’re a startup,” Penmesta stated. It’s crucial to be agile, isn’t it?
