Autonomous electrical tractor startup Monarch Tractor warned workers Thursday it could want to put off greater than 100 workers, or probably even ‘shut down,’ in line with a company-wide memo obtained by TechCrunch.

The memo comes after Monarch Tractor was already chopping some positions over the previous couple of weeks at its California company amenities and distant groups in India and Singapore, in line with a number of former workers who spoke with TechCrunch on the situation of anonymity.

Monarch Tractor was based in 2018 by a staff that included a former prime government at Tesla’s first gigafactory and Carlo Mondavi, a scion of the well-known winemaking household. The corporate raised at the very least $220 million, together with $133 million in 2024, because it pursued a objective of creating “driver non-compulsory” autonomous tractors that might carry out duties at locations like wineries and different fruit farms.

Whereas Monarch Tractor claims to have shipped round 500 of these tractors up to now, the corporate introduced a restructuring in late 2024 that was supposed see its tractors broaden to different use instances, like pushing feed at dairy farming and sustaining golf programs. CEO Praveen Penmesta additionally stated on the time that Monarch Tractor would focus extra on promoting software program providers and licensing the corporate’s autonomous tech.

At the very least one buyer — considered one of Monarch Tractors’ first sellers — claims the autonomous tech by no means labored nicely, if in any respect, in line with a lawsuit first reported by TechCrunch this week. Idaho dealership Burks Tractor claimed Monarch bought it “faulty” automobiles that skilled “vital issues” after they arrived in 2024. Primarily, Burks accused Monarch’s tractors of being “unable to function autonomously.” (Monarch denied the claims in a court docket submitting.)

Monarch Tractor suggests to workers within the memo on Thursday it’s attempting to pivot even more durable away from making tractors — which might not be shocking, on condition that the startup misplaced its contract producer, Foxconn, earlier this yr.

“The brand new marketing strategy will allow Monarch clients to launch totally commercialized software program as a service (SaaS) autonomy and different software program choices direct to customers, unlocking new income streams to OEMs,” the startup’s human sources staff wrote. “Sadly, the timing for finishing the transition to the brand new marketing strategy places Monarch prone to shut down.”

Monarch informed workers within the memo it could completely lay off “as much as 102 workers.”

It’s unclear how many individuals at present work for Monarch. The startup had round 300 workers in late 2024 when it laid off greater than 10% of the corporate as a part of the restructuring. The previous workers accustomed to the current cuts couldn’t say precisely how giant these layoffs had been. Penmesta didn’t instantly reply to a request for remark.

By way of this yr, Monarch Tractor has additionally misplaced some prime expertise, together with the co-founder from Tesla, Mark Schwager.

“We began Monarch with a daring imaginative and prescient: that farming might be electrified, automated, good and made extra worthwhile — all of sudden,” Schwager wrote in a LinkedIn put up in July, whereas explaining he would stay on the corporate’s board. “Monarch is in nice place and in nice arms for the subsequent leg of its trajectory – making the timing proper for this transition.”