Monarch Tractor Plans Job Cuts Amid Shutdown Warning to Staff
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Published: 11/20/2025
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Updated: 11/20/2025, 3:31:06 AM
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8 updates
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7 min read
📱 This article updates automatically every 10 minutes with breaking developments
Monarch Tractor, the autonomous electric tractor startup, has issued a stark warning to its employees that it may need to lay off more than 100 workers and could potentially shut down entirely, according to a company-wide memo obtained by TechCrunch. This announcement follows ongoing layoffs at its California headquarters and remote teams in India and Singapore over recent weeks, reflecting deep financial and operational challenges for the company[1].
The company, which pioneered electric and autonomous tractor...
The company, which pioneered electric and autonomous tractors and reportedly shipped around 500 units to date, is undergoing a major strategic shift away from manufacturing hardware toward focusing on software services and licensing its autonomous technology. This pivot aims to enable customers to launch fully commercialized software-as-a-service (SaaS) autonomy solutions and unlock new revenue streams for original equipment manufacturers (OEMs). However, Monarch’s leadership acknowledges that the timing of this transition threatens the company's viability, putting it at risk of shutting down if the new business plan cannot be fully executed[1].
Monarch Tractor’s difficulties have been compounded by losin...
Monarch Tractor’s difficulties have been compounded by losing its contract manufacturer, Foxconn, earlier this year, which disrupted its hardware production capabilities. The company had previously laid off more than 10% of its workforce in late 2024 during a restructuring aimed at expanding tractor use cases beyond traditional farming to areas like dairy feed pushing and golf course maintenance[1][3].
The current memo to staff indicates that up to 102 employees...
The current memo to staff indicates that up to 102 employees may be permanently laid off as Monarch attempts to accelerate its transformation into a software-focused enterprise. The exact current size of the workforce is unclear, but the company reportedly had around 300 employees after the 2024 cuts[1].
Adding to Monarch’s challenges, the company is facing a fede...
Adding to Monarch’s challenges, the company is facing a federal lawsuit from Burks Tractor, an Idaho dealership, alleging that Monarch’s tractors failed to operate autonomously as promised. The lawsuit claims the dealership purchased $773,000 worth of tractors that have significant operational problems and cannot function without human drivers, undermining Monarch’s core business model. This legal action highlights ongoing product reliability issues just as the startup tries to pivot away from hardware manufacturing[5][11].
Monarch Tractor’s situation reflects broader industry pressu...
Monarch Tractor’s situation reflects broader industry pressures as other technology and automobile companies, including major players like General Motors and Ford, have also announced significant layoffs in 2025 due to market slowdowns and strategic shifts. Monarch’s attempt to survive by focusing on software and autonomous vehicle technology licensing is a notable example of the challenges facing innovative startups transitioning from hardware to tech services in a changing economic landscape[2].
The startup’s CEO, Praveen Penmesta, has not yet commented p...
The startup’s CEO, Praveen Penmesta, has not yet commented publicly on the latest developments or the lawsuit. Employees and observers remain uncertain about the company’s future as it navigates this critical juncture[1][5].
🔄 Updated: 11/20/2025, 2:21:01 AM
Consumer and public reaction to Monarch Tractor’s job cuts and shutdown warning has been largely critical and concerned. Some former employees reported being let go without severance amid the recent layoffs impacting over 10% of the workforce, with fears growing as the company warned it might permanently lay off up to 102 employees or even shut down entirely[1][3]. Customers and industry observers have expressed disappointment, especially after lawsuits surfaced claiming Monarch’s tractors failed to operate autonomously as promised[9][12], fueling skepticism about the startup’s future in agriculture technology.
🔄 Updated: 11/20/2025, 2:31:07 AM
Monarch Tractor is laying off 10% of its workforce as part of a major strategic restructuring that shifts the company away from hardware manufacturing toward software development and autonomous vehicle technology licensing.[1][5] The California-based electric tractor manufacturer is pivoting beyond agriculture to explore new markets, with CEO Praveen Penmetsa indicating the company will announce new manufacturing partnerships in the coming weeks.[3] This move follows Foxconn's decision to cease EV tractor production at its Lordstown, Ohio plant—which Foxconn sold to a SoftBank affiliate for $375 million—forcing Monarch to seek alternative production arrangements despite having built up inventory to meet near-term customer demand.[3
🔄 Updated: 11/20/2025, 2:41:02 AM
Monarch Tractor has announced plans for additional job cuts, warning staff of a potential shutdown amid intensifying competition and a shifting market landscape. The company, which previously laid off over 10% of its workforce in late 2024—reducing its team from around 300 employees—now faces mounting pressure as rivals consolidate and demand for autonomous farm equipment slows. “The industry has slowed down on acquisition of new equipment and new solutions, especially in the core farming sectors,” CEO Praveen Penmetsa told TechCrunch, citing increased competition and a retreat in agri-tech investment as key factors.
🔄 Updated: 11/20/2025, 2:51:01 AM
Monarch Tractor is cutting more than 10% of its workforce—over 30 employees based on its late 2024 headcount of around 300—as part of a major restructuring to shift focus from manufacturing to software and autonomous vehicle (AV) technology licensing, according to TechCrunch and OpenTools.ai. The company has warned staff of potential shutdown risks amid ongoing operational challenges, including lawsuits over tractors that failed to operate autonomously and scrutiny over its financial reporting, notably a disputed $37 trillion revenue claim for 2023 that has raised serious questions about its viability and transparency.
🔄 Updated: 11/20/2025, 3:01:04 AM
Monarch Tractor is planning further job cuts as it warns staff of a potential shutdown, following a recent 10% workforce reduction—about 35 employees—amid a strategic pivot toward software and autonomous vehicle licensing, according to TechCrunch. Industry experts warn the move signals deeper instability in the agri-tech sector, with one analyst noting, “Monarch’s shift away from manufacturing reflects a broader retreat from capital-intensive hardware as investors sour on unproven autonomous ag solutions.” The company, which has raised $220 million since 2018, now faces mounting pressure as lawsuits emerge over tractors failing to deliver promised autonomous capabilities.
🔄 Updated: 11/20/2025, 3:11:02 AM
Monarch Tractor has announced plans for additional job cuts, warning staff of a potential shutdown as the company grapples with a shifting competitive landscape marked by declining agri-tech investment and increased pressure from established equipment manufacturers. With around 300 employees in late 2024 and already having laid off more than 10% this year, Monarch is now pivoting toward software and autonomous vehicle licensing to survive amid shrinking farm equipment sales and intensifying competition—CEO Praveen Penmetsa noted, “The industry has slowed down on acquisition of new equipment and new solutions, especially in the core farming sectors.”
🔄 Updated: 11/20/2025, 3:21:00 AM
Monarch Tractor’s recent announcement to cut 10% of its workforce amid a company-wide restructuring has drawn international attention due to its pivot from manufacturing to software and autonomous vehicle (AV) tech licensing. The layoffs involve about 35 employees and follow earlier reductions this year, signaling challenges in scaling its electric autonomous tractors globally, despite raising $220 million since 2018 and shipping 500 units worldwide[1][3]. Internationally, industry observers note Monarch's strategic shift to diversify into non-agricultural markets such as golf courses and solar farms, while partnering with contract manufacturer Foxconn in the U.S., reflecting broader trends in AgTech’s global adaptation to supply chain pressures and evolving market demands[1][2].
🔄 Updated: 11/20/2025, 3:31:06 AM
Monarch Tractor is planning additional job cuts amid internal warnings of a potential shutdown, with experts noting the company’s pivot to software and licensing comes as its hardware ambitions falter. Industry analysts cite the recent lawsuit over non-autonomous tractors and the closure of its Ohio manufacturing facility—converted into an AI data center—as major setbacks, with one source telling TechCrunch, “The foundation of their hardware business is crumbling, and the shift to software feels like a last-ditch effort to survive.”