Amid a national slowdown in the demand for electric vehicles, Lucid Group Inc., based in California, announced it is laying off 6% of its workforce, which translates into about 400 jobs. According to a regulatory filing cited by the Business Journal, the move is part of a long-term maneuver to pave the way for the company's growth. Despite this setback, Lucid is still aiming to hit its robust vehicle production targets for 2024.
With a workforce that previously included roughly 2,500 employees in Casa Grande after last year's 1,000-worker layoff, the reductions are stated to cover a swath of positions across the board, including executive and mid-level management. In an internally circulated email, CEO Peter Rawlinson expressed the difficulty of the decision stating, "Letting go of our talented team members is difficult and a decision we did not take lightly,” according to ABC15.
The layoffs, however, will not affect Lucid's hourly manufacturing and logistics workforce, including those employed at the Arizona manufacturing plant. For those being shown the door, Lucid has disclosed severance and extended health benefits, alongside outplacement assistance. "Please provide empathy and support to colleagues beginning their search for new employment,” Rawlinson beseeched in the letter to employees, as stated by Phoenix Business Journal.
Affecting various employees caught in the restructuring net, the company anticipates incurring between $21 million to $25 million from the plan, the bulk of these costs associated with severance and related benefits. Lucid maintains a strong financial footing, boasting over $5 billion in liquidity after securing $1 billion in new financing as of the first quarter's end. This influx of cash comes courtesy of an alliance with a major shareholder, the Ayer Third Investment Co., linked to the Saudi Public Investment Fund, as an article by the Business Journal declares.
