Lucid Group Inc. plans to lay off roughly 1,300 employees, the electric-vehicle maker disclosed Tuesday.
In a filing with the Securities and Exchange Commission, Lucid LCID, -7.25% said it will cut about 18% of its workforce, with the layoffs expected to be “substantially complete” by the end of the second quarter. In a letter to employees that was included in the SEC filing, Chief Executive Peter Rawlinson described it as a “painful but necessary decision.”thereby strengthening the company for the long term,” he wrote.
The cuts, which were first reported by Insider ahead of the filing, arrive after a rough start to the company’s production of electric vehicles. Lucid began mass-producing EVs in 2022, when it lost more than $1.3 billion on revenue of slightly more than $600 million. In February, executives disappointed Wall Street by projecting production of 10,000 to 14,000 vehicles in 2023 as reservation numbers declined.
The layoffs will cost the company $24 million to $30 million in restructuring charges, with all but about $2 million of those costs expected to show up in the company’s first-quarter results. In his letter, Rawlinson promised employees “a severance package that includes access to career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity to help as much as possible with the transition.
Lucid shares fell 7.3% Tuesday following initial reports of the layoffs, and have declined more than 70% in the past year, as the S&P 500 index SPX, -0.16% has dropped 13.1%.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Sonos Era 300 review: the best Sonos speaker yet | Digital TrendsWith outstanding sound for stereo and Dolby Atmos Music, the Sonos Era 300 wireless smart speaker is the complete package.
Leer más »
Sonos Era 300 review: A big bet on spatial audio | EngadgetThe Era 300 is one of the most impressive music speakers Sonos has released in years, with loud bass, detailed highs and excellent clarity.
Leer más »
Sonos Era 300 review: too ahead of its timeWhen it’s good, there’s no other speaker that sounds like this.
Leer más »
The Sonos Era 300 Is the Best Premium Speaker for Apple HouseholdsThe Era 300 works best within Apple-dominant households.
Leer más »
Acer Helios 300 SpatialLabs Edition review: Glasses-free 3D is just pointless | EngadgetWhile Acer's Predator Helios 300 SpatialLabs Edition has cool glasses-free 3D tech, it’s not supported by enough games to justify its $3,500 price..
Leer más »
Stimulus update: Direct $500 payments for more than 300 families to be sent in 23 daysSelect families in Sonoma County, California, are set to receive their next payment from a guaranteed income program in 23 days.
Leer más »