Lucid Motors cuts 400 jobs ahead of crucial SUV launch

Lucid Motors is laying off about 400 employees, or about 6% of its workforce, as part of a restructuring ahead of the launch of its first electric SUV later this year.

The company said in a regulatory filing Friday morning that it expects to complete the restructuring by the end of the third quarter and that it will cost between $21 million and $25 million.

The new round of job cuts comes just over a year after Lucid Motors cut 1,300 jobs.

“I am confident that Lucid will deliver the best SUV in the world and significantly expand our total addressable market, but we are not yet generating revenue from this program,” CEO Peter Rawlinson said in an email to the company . “As always, we must remain vigilant about costs. We optimize our resources in a way that we believe will best position the company for future success and growth opportunities, while focusing on achieving our ambitious goals.

Rawlinson said the reductions would affect both full-time and contract staff at Lucid, and would include “leadership and mid-level management.” Hourly manufacturing and logistics employees will not be affected.

Lucid’s restructuring also follows massive cuts at Tesla, which have been rolled over over the past month or so. Nearly all electric vehicle companies in North America have cut staff this year, as the breakneck growth of recent years has slowed.

Lucid, in particular, has struggled to find buyers for its only existing model, the Air sedan, although the company set a record for deliveries in the first quarter of 2024. In March, the company raised another $1 billion with its majority owner, the sovereign company of Saudi Arabia. funds.