Lucid Group of the U.S., a luxury electric vehicle company, announced that it will do a massive layoffs of 1,300 employees, or about 18% of its total employees, to reduce costs. Lucid was once noted as a “second Tesla,” but it is a U.S. electric vehicle stock whose stock price has plunged more than 80% compared to its current peak.
Lucid plans to lay off 1,300 employees as part of restructuring to cut costs, according to CNBC. As of the end of last year, Lucid’s total number of employees was 7,200, with the restructuring ratio reaching 18%.
Earlier, Lucid CEO Peter Rollinson said in a letter that he will communicate with employees about job cuts and push for job cuts in all organizations and positions, including executives. Lucid plans to complete the restructuring by the second quarter of this year, paying $24 million to $30 million for layoffs.
“At this point, we are reviewing all non-critical expenditures and taking continuous measures to manage costs,” CEO Rollinson said.
Lucid massive layoffs were first reported through Insider during the day, and in the aftermath, Lucid’s stock price plunged 7% in regular trading.
Lucid is actively cutting costs because profitability continues to deteriorate. Lucid’s earnings per share (EPS) is still in the red. Sales in the previous two quarters also reported poor performance below market estimates.
Lucid is currently selling only one type of electric vehicle called “Air,” a luxury sedan. The number of units produced this year was about 10,000 units, far below the market forecast (20,000 units).
Lucid’s poor performance was also affected by a drop in demand for Lucid products due to price cuts by major electric vehicle makers such as Tesla.
