05/24/2024 – 14:10
Lucid Group is laying off 400 employees, or 6% of its workforce, as part of a restructuring plan. The electric vehicle maker said on Friday that the restructuring aims to reduce costs as a result of evolving business needs and productivity improvements.
The company expects to record between $21 million and $25 million in charges, most of which will be recognized in the second quarter.
The plan should be practically completed by the end of the third quarter. In a letter to employees, CEO and Chief Technology Officer Peter Rawlinson said the layoffs will affect employees at all levels, including leadership and mid-level management. The workforce reduction will not affect hourly manufacturing and logistics employees, he said.
“I am confident that Lucid will deliver the best SUV sport utility vehicle in the world and dramatically expand our total addressable market, but we are not yet generating revenue from the program,” said Rawlinson.
Lucid will focus its resources on accelerating new customer acquisition and will begin production of its Gravity SUV program by the end of 2024 and its midsize program by the end of 2026, while continuing to monitor its expenses.
The company’s restructuring plan comes shortly after it reported a smaller loss in the first quarter and a 16% increase in revenue as it continued to increase production of its electric vehicles.
At 1:54 pm (Brasília time), the company’s shares fell 2.21% in New York. Source: Dow Jones Newswires.
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