A number of electric vehicle startups have had to face a harsh reality and the latest is Lucid, which is planning layoffs.
In a filing with the U.S. Securities and Exchange Commission, Lucid revealed a new restructuring plan that aims to reduce operating expenses in “response to evolving business needs and productivity improvements.” As part of this effort, the company aims to axe approximately 18% of its workforce or around 1,300 people.
The layoffs are expected to be “substantially complete” by the end of the second quarter and the company could take a $30 (£24.3 / €27.6) million hit in charges related to severance payments and benefits – among other things.
More: Lucid Will Reportedly Call Cancelling Customers Up To 14 Times
CEO Peter Rawlinson sent an email to employees titled “Difficult News Today.” While it was written in advance, the email stated “we are reducing the size of our organization by approximately 18%, which will affect Lucid employees and contractors.” He said those impacted will be given a “severance package that includes access to career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity to help as much as possible with the transition.”
The email stated additional information will follow in the coming days, but noted there will be “reductions in nearly every organization and level, including executives.” All employees will find out their status this week, so it’s undoubtedly going to be a rough one.
Rawlinson went on to say, “We have been reviewing and implementing several other ways to optimize our cost structure, but unfortunately these measures alone won’t achieve our objectives. Consequently, we’ve made the painful but necessary decision to let some of our talented team members go.”
Rawlinson wrapped up by saying the cuts are designed to make the company stronger and more resilient long-term. The executive went on to thank employees for their “tremendous perseverance, resourcefulness, and teamwork,” and note the Gravity SUV is still slated to arrive in 2024.
H/T to Business Insider
