LUCID Group will reduce its workforce in the United States by 6 per cent, or around 400 employees, it said on Friday (May 24), becoming the latest electric-vehicle maker to cut jobs as the industry grapples with slower growth.
Automakers adapt to economic challenges by prioritizing cost control and shifting focus to more affordable hybrid alternatives.
CEO Peter Rawlinson informed employees via email that layoffs would affect all levels except hourly manufacturing and logistics staff.
The company had a total of around 6,500 full-time employees globally, as of December last year, its latest annual filing showed.
Shares of the EV maker rose 1 per cent in premarket trading.
Lucid plans to incur about US$21-25 million in charges for the workforce reduction, completing it by Q3 2024.
In navigating the softening EV demand, Lucid’s workforce adjustments signal a proactive approach to sustain its market position. Lucid US workforce optimization aims to position the company for future growth opportunities. By recalibrating its workforce size, Lucid can better navigate market uncertainties while maintaining focus on its core objectives.
As the EV industry continues to evolve, Lucid’s strategic workforce decisions reflect its commitment to agility and resilience in the face of changing market dynamics.
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