Lucid to Trim its US Workforce by 6% as EV Demand Continues to Lag

Lucid Group will become the latest electric-vehicle maker to cut jobs after announcing plans to reduce its workforce in the United States by 6%.

The job cut will affect around 400 employees. The EV industry has been grappling with slowing growth as automakers have been trying to control costs in the face of elevated inflation and high interest rates.

Lucid’s CEO Peter Rawlinson told employees via an email that the layoffs at Lucid will impact employees at all levels, including leadership and mid-level management. Hourly manufacturing and logistics workforce will not be affected, according to the email.

The company had a total of around 6,500 full-time employees globally, as of December last year, its latest annual filing showed.

Lucid expects to incur a total of around $21 million to $25 million in charges related to the workforce reduction and expects to complete the plan by the end of the third quarter of 2024.

The EV Sector has become rife with layoffs. Rivian underwent two rounds of layoffs this year, the latest being in the last month when it cut 1% of its workforce in an attempt to boost margins.

EV giant Tesla also said last month it would lay off more than 10% of its global workforce.

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