Electrical-vehicle maker Lucid Group Inc mentioned on Tuesday it could lay off about 18% of its workforce, or round 1,300 workers, to chop prices as a part of a restructuring plan.
The maker of Air luxurious sedan final month forecast 2023 manufacturing that fell effectively wanting analysts’ expectations and reported a serious drop in orders through the fourth quarter.
The corporate plans to speak with all its workers over the following three days concerning the plan, CEO Peter Rawlinson mentioned in a letter, including its US workforce will see reductions in almost each group and degree, together with executives.
Lucid, which had about 7,200 workers on the finish of final yr, will incur between $24 million and $30 million in associated expenses. The corporate expects to considerably full the restructuring plan by the tip of the second quarter.
“We’re additionally taking continued steps to handle our prices by reviewing all non-critical spending presently,” Rawlinson mentioned.
Corporations in the US are reining in bills as they brace for a looming recession amid aggressive rates of interest hikes by central banks.
Trade specialists say worth cuts by trade chief Tesla Inc and the provision of cheaper EV fashions from conventional automakers have weighed on demand for brand new autos from startups corresponding to Lucid and Rivian Automotive Inc.
Final month, Rivian mentioned it could let go of 6% of its workforce in an effort to chop prices.
Lucid’s shares closed down about 7% in common buying and selling.