Lucid Motors faces difficulties and must lay off 1300 employees
- Written by : Ashton G. Curran
- Date Published : 2023-04-01
- Date Updated : 2023-04-01
- Category / Tag : articles
This move comes after the company experienced initial production difficulties and a sharp drop in demand since the fourth quarter of 2022, which was well below analysts' expectations.
According to CEO Peter Rawlinson, the headcount reduction will affect all levels, including executives, and will require the company to incur expenses of $24 million to $30 million.
Lucid Motors aims to complete the reorganization by the end of the second quarter of 2023.
The current economic climate, with a possible recession and anticipated hike in interest rates by central banks, has led many US companies to cut costs.
Additionally, the electric car market is highly competitive, with Tesla reducing its prices and more affordable electric cars entering the market.
To control costs, Lucid Motors is reviewing all non-essential expenses, while Peter Rawlinson remains confident about the company's future and believes that the reorganization will help it overcome the current difficulties.
Another electric car maker, Rivian, has also announced that it will lay off 6% of its workforce for the same reasons as Lucid Motors.