Lucid Group, the U.S. automaker that makes the luxury all-electric Air cars is restructuring its workforce by 18%, according to a regulatory filing.
The 1,300 layoffs are expected to be completed by the end of the second quarter.
Lucid anticipates incurring $24 million to $30 million in restructuring-related charges, owing to severance payments, employee benefits, and stock-based compensation.
The layoffs will affect the entire organization, including executive positions.
In an email to employees, CEO and CTO Peter Rawlinson stated that the restructuring is the result of “evolving business needs and productivity improvements.”
He stated that the move is in line with a cost-cutting announcement made in late February.
According to the email, the company’s cost-cutting efforts were insufficient to avoid layoffs.
According to Rawlinson, the decisions are intended to position the company to be “more resilient and agile” in the long run.
He also stated that Lucid still plans to release the Gravity SUV in 2024.
Lucid reported fourth-quarter and full-year 2022 earnings last month that fell short of Wall Street expectations.
In addition, the company reduced its 2023 annual production target to 10,000 to 14,000 units or roughly half of the 20,000 to 22,000 deliveries expected for the year.
