LIVERMORE — An East Bay company that created an electric-powered autonomous tractor has decided to chop more than 100 jobs in Livermore, a bout of layoffs that is a reminder of the unsteady Bay Area labor market.
Zimeno Inc., which operates as Monarch Tractor, has laid off 102 workers at two locations in Livermore, according to official WARN notices sent to the state Employment Development Department.
Some of the Zimeno and Monarch Tractor layoffs occurred at the company’s headquarters at 151 Lawrence Drive, and some occurred at the company’s testing facility at a Wente Vineyards site on Tesla Road, both in Livermore.
The staffing reductions arrived at a time when Monarch is beginning to emphasize a new software platform whereby Monarch will be able to provide advanced computing technologies for numerous industries beyond vineyards and farms.
By happenstance, the job cuts came to light a few weeks after an Idaho-based vehicle dealer sued Zimeno and Monarch Tractor in a dispute over the operational capabilities of Monarch’s autonomous vehicles, according to federal court records.
The layoffs took place on Nov. 19, according to the WARN letter.
This news organization reached out to Monarch Tractor to obtain a comment or context regarding the layoffs and the legal complaint.
“The workforce reductions are expected to be permanent,” a Zimeno Inc. and Monarch Tractor human resources representative wrote in the WARN notice sent to the state EDD.
Over the 12 months that ended in August, the Bay Area lost 7,200 jobs, representing a 0.2% drop in the region’s nonfarm payroll job totals. During the same period, California gained a puny 69,500 jobs, or a 0.4% gain in job totals. The gains in the United States outpaced those in California by more than double, with a 0.9% gain in nonfarm payroll jobs over the same yearlong period.
On Oct. 16, Burks Tractor Co. Inc. sued Monarch Tractor and Zimeno Inc. in Idaho state court, claiming that Monarch sold Burks Tractor 10 tractors for approximately $773,100. Burks Tractor claimed that Monarch and Zimeno represented that the tractors all operated autonomously. The litigation originated in Idaho state court but has been transferred to the federal court system.
“After several attempts to make the autonomous tractors work autonomously, the Monarch sales team admitted both verbally and in writing that the tractors’ autonomy was limited and the tractors were not able to operate autonomously indoors,” Burks Tractor stated in court papers.
Livermore-based Monarch Tractor denied the allegations. Monarch Tractor acknowledges that it sold the tractors to Burks Tractor.
However, Monarch denied the allegations regarding the limited operational capabilities of the tractors, as well as denying numerous other accusations.
“Defendant (Monarch Tractor) admits only that it has marketed a certain tractor model as being ‘driver optional,’” Monarch Tractor stated in its response to the lawsuit.
Zimeno and Monarch have begun to tout a new software system powered by artificial intelligence that will enable original equipment manufacturers, or OEMs, to create smarter machines and vehicles. The company hopes to harvest revenue from licensing its software and data tools.
“Monarch is partnering with OEMs to co-develop, deploy, and scale the next generations of smart, electric, and automated machines in gritty, unstructured environments,” Monarch Tractor states on its website.