Lucid Motors is letting go of about 400 workers, or about 6% of its staff, as part of a reorganization that will happen before the release of its first electric SUV later this year.
The company told the government on Friday morning that the restructuring should be finished by the end of the third quarter and will cost between $21 million and $25 million.
It’s been a little more than a year since Lucid Motors cut 1,300 jobs.
CEO Peter Rawlinson told the company in an email, “I’m confident Lucid will deliver the world’s best SUV and dramatically expand our total addressable market. But we aren’t making money from the program yet.” “As always, we need to be careful about costs.” We are focusing on reaching our lofty goals while making the best use of our resources in a way we think will set the company up for future success and growth.
People who work full-time or on contract for Lucid will be let go, according to Rawlinson. These people include “leadership and mid-level management.” Manufacturing and logistics workers who are paid by the hour will not be impacted.
The restructuring at Lucid also comes after Tesla made a lot of changes over the last month or so. This year, almost every electric car company in North America has cut staff because the last few years’ sky-high growth has slowed down.
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Lucid has had a hard time selling its only model, the Air car, even though the company set a record for deliveries in the first quarter of 2024. The company got an extra $1 billion in March from Saudi Arabia’s national wealth fund, which owns most of the business.
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