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Lucid to Cut 6% of Workforce

May 25, 2024
The move is just the latest in a series of layoffs in the EV sector.

Luxury EV maker Lucid Group Inc. is cutting about 400 jobs, or 6% of its workforce, in a bid to “optimize […] operating expenses,” according to a May 24 regulatory filing.

The cuts are expected to be completed by the third quarter of this year and will cost the company $21 million to $25 million in expenses related to “severance payments, employee benefits, employee transition, and stock-based compensation.” The bulk of those charges, the filing said, will be recognized in Q2. Last year, Lucid laid off 1,300 employees for similar reasons; the company finished 2023 with about 6,500 employees.

The news comes just a few weeks after the company posted a mixed Q1 report that included higher-than-expected deliveries but low production numbers. Executives said they are set to release the Gravity SUV this year; the vehicle is expected to start under $80,000, putting it on the cheaper side of its line-up.

Lucid hasn’t been the only EV company this year turning to job cuts to keep costs down: Last month, market leader Tesla Inc. announced it would lay off 10% of its workforce and briefly disbanded its entire Supercharger team before rehiring some workers. Electric pickup manufacturer Rivian Automotive Inc. has pushed through multiple rounds of layoffs this year as well, cutting 10% and then another 1% of its employees in February and April, respectively. Embattled Fisker Inc. also cut 15% of its workers in March as it tries to stay afloat.

Shares of Lucid (Ticker: LCID) have been on a downward trend over the past six months, hitting an all-time low of $2.29 per share in April. As of Friday afternoon, the price sat at $2.64 per share, putting its market capitalization at just over $6 billion.

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