Lucid to lay off 18% of the workforce

Electric vehicle startup Lucid Group (NASDAQ: LCID) plans to lay off around 1,290 employees, or 18% of its workforce, according to sources familiar with the matter and an internal memo viewed by Business Insider.

According to the memo, the company will communicate details about the layoffs over the next three days.

Insider has confirmed the identities of the sources who are aware of the company's information but are not permitted to discuss it publicly, thus they have been given anonymity.

The cuts will impact every level of the company, including executives, and are attributed to cost discipline. Impacted employees will receive a severance package.

The memo also mentioned the cuts to cost discipline, and said that the company's ongoing cost optimization efforts alone wouldn't achieve its objectives and that the layoff of team members was a "painful but necessary decision."

Insider's request for comment regarding the announcement has not received an immediate response from the company.

Amid manufacturing and production hurdles, Lucid has faced a tough few months. To mitigate customer cancellations, the company implemented an internal cancellation protocol, offered an employee purchase program, and launched an inventory website to sell cars that don't require a wait.

Lucid has reached out to customers via email, informing them about the commercial EV tax credit applicable to leasing, as its EV doesn't qualify for the new EV purchase credit. Additionally, Lucid has lowered prices for orders that will be delivered by the end of April.

By Davit Kirakosyan

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