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All levels of the electric car company's personnel, including staff and contractors, will be affected.
The company is having difficulty constructing cars to meet the demands of customers; in February it reported 28,000 reservations but only projected to produce 10,000-14,000 vehicles in the upcoming year. This would be great progress from the 7,180 models produced this past year--with over 4,300 ultimately delivered.
Lucid, the EV startup that rivals Tesla with its Air sedan, has made known that it is forced to let go of around 1,300 of their staff members, which is roughly 18% of the company. Furthermore, as implied in an email from CEO Peter Rawlinson accompanying a regulatory filing, employees and contractors are not exempt “in nearly every organisation and level, including executives.”
Rawlinson has revealed that layoffs will occur within the next three days, and they are estimated to be finished by the end of June 2023. Those affected will be provided with career resources and healthcare coverage continuation paid for by Lucid. Additionally, the firm is expected to spend between $24 million to $30 million in costs such as payoffs, benefits, and stock-based compensation for transitioning employees.
For Lucid followers, this is on par with the cost-saving announcement that was released in February when they revealed their FY2022 finance report, which showed expenses of $2.6 billion. Rawlinson stated the job cuts bring this into perspective.
This week, Lucid reported another setback, recalling around 600 vehicles to address an issue that could lead to the cars losing power. Unfortunately, they are not alone in their struggles; Ford has laid off thousands of workers during the past year, GM is attempting to reduce its budget by $2 billion with buyouts, Stellantis has announced plans to shutdown a plant, Tesla has carried out layoffs, and other startups such as Arrival and Rivian have trimmed their staff numbers.
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