To save expenses, the Lucid electric vehicle manufacturer is cutting off roughly 1,300 workers and independent contractors.
According to a regulatory filing, the company made the news on Tuesday and said that job cuts will effect about 18% of its personnel. Nearly every level of the firm, including executives, is expected to see layoffs.
The announcement follows Lucid’s release of fourth-quarter revenue figures that fell short of projections. In 2022, the firm manufactured 7,180 automobiles, exceeding revised forecasts from August but falling short of the original goal of 20,000 published in November 2021.
CEO Peter Rawlinson wrote in a letter to staff that Lucid must reduce expenses because of “changing business needs and efficiency improvements.” This week, affected workers will receive notifications. Insider was the first to report the layoffs.
In the letter, Rawlinson stated, “We are also continuing to take steps to minimise our expenses by assessing any non-critical spending at this time. These choices are intended to put us in a position to be more adaptable and resilient, improving the business over the long run.
The company anticipates incurring costs associated with the layoffs of between $24 million and $30 million, including severance payments, employee benefits, and stock-based compensation.