U.S. electric vehicle maker Lucid Group will lay off about 1,300 employees, roughly 18 percent of its workforce, as part of a restructuring. The company is doing so to cut costs, Reuters reported, citing the company’s announcement. The maker of the Air luxury sedan last month released a production forecast for this year that fell short of analysts’ expectations. It also reported a significant drop in fourth-quarter orders.
The redundancies will affect all departments
Chief Executive Peter Rawlinson said he would talk to all employees about the plan in the coming days. The company plans layoffs in all departments and at all levels, including senior executives.
The carmaker had about 7,200 employees at the end of last year. It will book extraordinary costs of between USD 24 million and USD 30 million (CZK 523.3 million and CZK 654.1 million) due to the layoffs. The restructuring plan is expected to be completed in the second quarter.
Other measures will follow
Rawlinson added that the company is also taking other steps to reduce costs. It is currently reviewing all non-essential expenses.
Companies in the United States are cutting back on spending as they prepare for an impending recession in the wake of sharp interest rate increases. Industry experts say demand for new electric cars from start-ups such as Lucid and Rivian Automotive has been threatened by Tesla’s car price cuts and the availability of cheaper electric cars from traditional carmakers. Last month, Rivian announced it would lay off six percent of its workforce to cut costs.
Source: the Czech Press Office