Lucid Announces Layoffs and Reorganization Plan

TapTechNews May 24th, the electric vehicle manufacturer Lucid released an announcement that as part of its reorganization plan, it decided to lay off 400 people, accounting for 6% of its total number of employees. It is understood that as of December last year, Lucid had approximately 6500 full-time employees globally.

Peter Rawlinson, the chief executive officer and chief technology officer of Lucid, said in a letter to employees that the layoffs would affect employees at all levels, including leadership and middle management, but would not affect hourly-paid production line and logistics employees.

According to the introduction, this reorganization aims to reduce costs due to changes in business needs and improvement in production efficiency. The company expects to recognize costs of 21 to 25 million US dollars (TapTechNews note: currently about 152 to 181 million Chinese yuan), most of which will be recognized in the second quarter, and the plan is expected to be basically completed by the end of the third quarter.

Lucid hopes to focus resources on 'accelerating the expansion of new customers' and plans to start producing the Gravity SUV model by the end of 2024 and start producing a midsize car by the end of 2026, while continuing to control its expenditures.