- Lucid is cutting 6% of its workforce as part of its second restructuring in little over a year.
- The cuts will impact white collar employees at all levels including in leadership positions.
- The move comes after Lucid lost more than $680 million in the first quarter.
The job cuts continue at Lucid as the company has announced another restructuring. This time around the automaker aims to eliminate approximately 400 employees, which is approximately 6% of its workforce.
The cuts are slated to take place by the end of the third quarter and Lucid expects to take up to a $25 (£19.6 / €23) million hit. This will largely come in the form of “severance payments, employee benefits, employee transition, and stock-based compensation.” Lucid added the move is designed to optimize their “operating expenses in response to evolving business needs and productivity improvements.”
More: Lucid Cutting 18% Of Workforce In New Restructuring
In an e-mail to employees, CEO Peter Rawlinson said the cuts will hit white collar employees at “all levels, including leadership and mid-level management.” He went on to say, “Letting go of our talented team members is difficult and a decision we did not take lightly.” However, he noted “we must remain vigilant about costs” and they aren’t “generating revenue” from the Gravity SUV yet.
Rawlinson claimed the “future is bright at Lucid” and said “[I] am confident that we will only continue to grow stronger.” He went on to encourage employees to sell Air sedans, focus on getting the Gravity into production, and keep their mid-size vehicle on track for a 2026 launch.
The latest restructuring comes roughly a year after the last one as Lucid announced plans to cut 18% of their workforce in March of 2023. That effort eliminated approximately 1,300 employees, so the latest cuts likely aren’t going to help morale.
Lucid produced 1,728 vehicles in the first quarter of the year and posted revenues of $172.7 (£135.6 / €159.1) million. Despite putting a positive spin on those numbers, the company couldn’t hide the fact that they had a net loss of more than $680 (£534 / €627) million.
H/T to CNBC
