The news comes after the company notified the US Securities and Exchange Commission in a filing (PDF) that it intends to complete this restructuring plan by the end of the second quarter this year. Lucid CEO Peter Rawlinson told employees in a memo that the job cuts are a response to evolving business needs and productivity improvements.
Nearly every division in the US will be hit by the layoffs, including some executives. The cost-cutting measures, which include reviewing non-critical spending, are expected to cost the company $24 million to $30 million in severance payments, company-paid health insurance, and stock-based compensation for the affected workers.
Lucid's production goal for 2023 is 14,000 EVs, which is double last year's figure but falls short of the 21,000 units experts had expected. This shortfall is partly due to the decrease in demand for vehicles from startups like Lucid, as traditional automakers and Tesla have entered the affordable EV market.
Lucid, which had a sharp increase in revenue year-over-year, still plans to expand globally and develop new models, including the three-row Gravity electric SUV that it plans to release in 2024. The company has previously implemented other cost-cutting measures after announcing its 2022 earnings results in February.
Lucid Motors is an American electric vehicle manufacturer headquartered in Newark, California. Founded in 2007, the company designs luxury electric cars that further reimagine the driving experience. Lucid's mission is to create a sustainable future of mobility through its relentless focus on innovation, luxury, and sustainability.
The Lucid Air is the company's flagship model which features a single electric motor driving the rear wheels and produces 480 horsepower. Other models have dual electric motors that provide up to 1,080 horsepower and can reach speeds of over 200 mph. The Air also offers advanced driver assistance systems such as Autopilot 2.0 for semi-autonomous driving capabilities.
Source: Engadget