Lucid Motors will lay off almost one fifth of its current workforce. Here’s what’s going on with the luxury EV maker.
, amid ambitious plans to expand production to Saudi Arabia after the kingdom took a major stake in the EV maker.
Now, Lucid is planning to lay off approximately 18% of its workers. The cuts will amount to about 1300 employees, the company said in a regulatory filing, with the company saying it expects about $24 million to $30 million in expenses related to these job cuts. The EV maker says it is taking this action to reduce operating expenses, while also citing productivity improvements since the start of production. The automaker termed these cuts as being part of a"restructuring plan.""Given evolving business needs and productivity improvements, we are reducing the size of our organization by approximately 18%, which will affect Lucid employees and contractors," Lucid CEO Peter Rawlinson said in an email to employees this week.
In 2022 the automaker produced 7180 vehicles, while delivering 4369 vehicles, with the Air sedan accounting for all production. In 2023 the EV maker plans to produce between 10,000 and 14,000 vehicles.
While Rawlinson's letter mentions"evolving business needs" in regard to the cuts, over the past year industry analysts have cited the increasingly limited market for EV sedans with price tags around $100,000, as more competitors from German automakers continue to arrive.
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