About 1,300 employees, or 18% of Lucid’s 7,200 employees, will be let go, according to CEO Peter Rawlinson. According to estimates from Arena EV, Lucid will lose between $24 million and $30 million as a result of the layoffs. By the end of the second quarter, this restructuring plan will be finished, and employees at almost all levels, including leaders, will be impacted.
Along with many other businesses, Lucid is getting ready for the impending recession by declaring layoffs. However, this percentage might be the greatest one to date in terms of percentage. Due to aggressive price cuts by Tesla and the release of more affordable electric vehicles by established automakers, the business is currently facing major difficulties.
Lucid exceeded initial projections for car production in 2022, but 2023 production is expected to be significantly lower than anticipated by industry experts. This year, Lucid plans to build between 10,000 and 14,000 vehicles, far less than the analysts’ estimated production of 21,815 units.
The cuts will significantly affect Lucid’s ability to produce in the future. Despite the fact that the restructuring plan is intended to cut costs, it will also result in the loss of experienced workers at all levels, which could make it difficult for the business to increase output in the future.
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