What’s Happening: Lucid Group’s CEO, Peter Rawlinson, announced earlier today that the company will reduce its workforce by approximately 18% due to evolving business needs and productivity improvements. The reduction will affect both Lucid employees and contractors, and is in line with the cost discipline announcement made in late February when the company reported earnings.
Why It Matters: The decision to reduce the workforce is a difficult but necessary one as Lucid Group aims to optimize its cost structure. The company has been reviewing and implementing several other measures to achieve its objectives, but unfortunately, these measures alone won’t be enough. The cost-cutting action is designed to position the company to be more resilient and agile, thereby strengthening it for the long-term.
Key Points:
- Lucid Group will reduce its workforce by approximately 18%
- The reduction will affect both employees and contractors
- The decision is in line with the company’s cost discipline announcement made in late February
- The company is also reviewing all non-critical spending to manage costs
- Impacted employees will be offered a severance package that includes access to career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity to help with the transition
- The company’s U.S. workforce will see reductions in nearly every organization and level, including executives
Bottom Line: Lucid Group’s decision to reduce its workforce is a necessary step in optimizing its cost structure. The company’s leadership team and HR are committed to providing all employees with the respect and support they deserve during this time of change. The company’s mission remains unchanged as it continues to design, build, and deliver the best EVs on the market, including the upcoming Gravity SUV, while expanding globally and developing more exceptional vehicles.
