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EV startup Lucid to lay off around 1,300 employees in upcoming months

Electric vehicle (EV) startup Lucid announced that it is laying off around 1,300 of its employees or 18 per cent of its workforce, within the upcoming months

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Illustration: Binay Sinha

IANS San Francisco

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Electric vehicle (EV) startup Lucid announced that it is laying off around 1,300 of its employees or 18 per cent of its workforce, within the upcoming months.
According to an email from CEO Peter Rawlinson, which was attached to a regulatory filing, the job cuts will impact employees and contractors "in nearly every organisation and level, including executives", reports The Verge.
The filing stated that the restructuring should be finished "by the end of the second quarter of 2023", and Rawlinson said that workers will learn more about the layoffs over the next three days.
According to the email, fired workers will receive "career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity".
Moreover, the startup intends to spend between $24 million and $30 million on "charges related to employee transition, severance payments, employee benefits, and stock-based compensation", according to the filing.
The layoffs, according to Rawlinson, are "aligned with the cost discipline announcement we made in late February when we reported earnings", which also revealed that the company had spent about $2.6 billion over the fiscal year 2022.
Last month, the company reported having over 28,000 reservations, but stated that it would only be able to produce 10,000 to 14,000 vehicles throughout 2023.
This shows how difficult it has been for the company to get cars made and into the hands of customers, the report said.
--IANS
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mar 29 2023 | 10:23 AM IST

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