Québec City-based autonomous vehicle software provider LeddarTech is cutting 95 percent of its staff as it races to pay its debts.
The company announced the cuts after it warned investors last week that it could default on its credit facility with Desjardins, which requires the company to hold at least $1.8 million CAD in cash from April onward. LeddarTech had $9.2 million at the end of March, but just $4.1 million by May 8.
LeddarTech has not secured financing or relief from its obligations despite “active discussions.”
LeddarTech said the “temporary layoffs” affected approximately 138 individuals in all of its locations and across all departments within the organization.
The reductions are part of an effort to preserve company cash and provide LeddarTech additional time to pursue discussions with lenders, the company said in a statement.
This will also give LeddarTech more time to consider alternative strategies to address the situation, including a sale of the business or certain assets, strategic investments, or seeking creditor protection under the Companies’ Credit Arrangement Act.
In its situation, LeddarTech had to share a financing plan with its lenders by May 16, and raise $9.7 million USD (about $13.6 million CAD) in additional equity investments by May 23, deadlines the company did not believe it could meet. It warned its ability to operate might be “materially and adversely affected” if it couldn’t honour those deadlines.
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While LeddarTech said last week that it was working with Desjardins and bridge lenders on a “potential solution,” the company still hasn’t secured relief from its obligations under the credit facility or any additional finance, despite “active discussions.”
Founded in 2007, LeddarTech develops environmental-sensing solutions for autonomous vehicles and advanced driver-assistance systems. The company went public on the Nasdaq stock exchange in December 2023, just under two years after it closed $140 million in equity Series D funding and debt. The company already faced trouble once, when Nasdaq warned its share price has fallen below the $1-USD minimum required to maintain its listing on the Nasdaq Global Market.
LeddarTech’s stock price opened 2025 trading at $1.28 USD per share, and even peaked up to $1.75 USD per share at one point. It has since dropped more than 75 percent of its value, trading at $0.30 USD per share, with a market cap of $11.1 million USD, as of noon Thursday.
Feature image courtesy LeddarTech.