EV Startup Lucid to Cut 1,300 Jobs, 18% of Its Workforce

CEO Peter Rawlinson Calls Cuts 'Painful but Necessary'
The Lucid Air prototype EV
The Lucid Air prototype EV. (David Paul Morris/Bloomberg News

[Stay on top of transportation news: Get TTNews in your inbox.]

Lucid Group Inc. is eliminating 18% of its workforce, including employees and contractors, as the electric vehicle startup looks to cut costs in its second full year of production.

The reductions amount to about 1,300 positions, Lucid said in a regulatory filing March 28. The Newark, Calif., company said it’s “reviewing all non-critical spending at this time” and expects to incur charges of $24 million to $30 million related to its restructuring plan.

“These decisions are designed to position us to be more resilient and agile, thereby strengthening the company for the long term,” CEO Peter Rawlinson said in an email to staff. He called the job cuts “painful but necessary.”

Lucid shares were little changed in postmarket trading in New York. The stock fell 7.2% during the regular session March 28 after Business Insider reported on the job-cut plans.

Want more news? Listen to today's daily briefing below or go here for more info: