Lucid Motors, the electric vehicle manufacturer, is undergoing a restructuring process that involves laying off approximately 400 employees, which accounts for about 6% of its workforce. This move is being made in preparation for the launch of the company’s first electric SUV later this year. The restructuring is expected to be completed by the end of the third quarter and is projected to cost between $21 million and $25 million.
This recent round of layoffs follows a significant reduction in Lucid Motors’ workforce last year when they slashed 1,300 jobs. CEO Peter Rawlinson expressed confidence in the company’s ability to deliver the world’s best SUV and expand its market, but acknowledged that revenue from the program has not yet been generated. Rawlinson emphasized the need to remain vigilant about costs and optimize resources to position the company for future success and growth opportunities.
The job cuts will impact both full-time and contract workers, including leadership and mid-level management positions. However, hourly manufacturing and logistics employees will not be affected. It is worth noting that Lucid Motors’ restructuring coincides with similar actions taken by other electric vehicle companies, such as Tesla, which have also been reducing their workforce recently due to a slowdown in the industry’s rapid growth.
Lucid Motors has faced challenges in finding buyers for its current model, the Air sedan. However, the company achieved a delivery record in the first quarter of 2024. To secure additional funding, Lucid Motors raised $1 billion from its majority owner, Saudi Arabia’s sovereign wealth fund, in March.
Overall, Lucid Motors’ decision to restructure its workforce reflects the company’s commitment to optimizing operations and ensuring its long-term success. By focusing on cost efficiency and resource allocation, Lucid Motors aims to position itself as a leader in the electric vehicle market while preparing for the launch of its highly anticipated electric SUV later this year.
