Lucid Motors is reducing its workforce by roughly 400 employees, around 6%, as part of a restructuring plan ahead of the release of its inaugural electric SUV later this year.
The company announced in a regulatory filing on Friday morning that it aims to finalize the restructuring by the close of the third quarter, with costs estimated between $21 million and $25 million.
This latest round of layoffs follows a previous cut of 1,300 jobs by Lucid Motors just over a year ago.
“I’m confident Lucid will deliver the world’s best SUV and dramatically expand our total addressable market, but we aren’t generating revenue from the program yet,” CEO Peter Rawlinson stated in an email to employees. “As always, we must remain vigilant about costs. We are optimizing our resources in a way we believe will best position the company for future success and growth opportunities as we focus on achieving our ambitious goals.”
Rawlinson mentioned that the workforce reductions will impact both full-time and contract employees, including “leadership and mid-level management,” but will not affect hourly manufacturing and logistics staff.
Lucid’s restructuring follows significant layoffs at Tesla in recent weeks, as nearly all electric vehicle manufacturers in North America have downsized their staff this year amid a cooling growth trajectory.
Lucid, in particular, has faced challenges in attracting buyers for its sole existing model, the Air sedan, despite setting a delivery record in the first quarter of 2024. In March, the company secured an additional $1 billion in funding from its majority owner, Saudi Arabia’s sovereign wealth fund.
