- Lucid Motors is laying off about 400 employees, approximately 6% of its workforce, as part of a restructuring ahead of its first electric SUV launch later this year. According to a regulatory filing on Friday morning, the restructuring will be completed by the end of the third quarter, costing between $21 million and $25 million. This comes just over a year after Lucid Motors cut 1,300 jobs.
-
CEO Peter Rawlinson addressed the company in an email, expressing confidence in Lucid's ability to deliver the world’s best SUV and expand its market significantly. However, he emphasized the need to remain vigilant about costs since the company has yet to generate revenue from the new program. The layoffs will impact both full-time and contract employees, including leadership and mid-level management, but hourly manufacturing and logistics employees will not be affected. Moreover, Lucid has faced challenges in finding buyers for its existing model, the Air sedan, despite setting a delivery record in the first quarter of 2024. In March, Lucid secured an additional $1 billion from its majority owner, Saudi Arabia’s sovereign wealth fund.
Why it matters
This restructuring follows significant cuts at Tesla and other North American electric vehicle companies as the rapid growth of recent years has slowed.
