Lucid Motors stated Friday that it will lay off 400 people, or 6% of its staff, to restructure before launching its first electric SUV later this year.
According to a regulatory filing, the electric vehicle maker plans to finish restructuring by the third quarter. Estimates place the cost of the restructure between $21 and $25 million. This workforce reduction follows the company's 1,300 job cuts a year ago, according to TechCrunch.
Lucid CEO Says Workforce Reduction is Necessary
In an email, CEO Peter Rawlinson noted that they need to work to attain the company's "lofty goals" by maximizing resources "to position" Lucid for success. Rawlinson added that he is "confident" that Lucid will bring the best SUV in the world and "dramatically expand" its market.
According to Rawlinson, the layoffs will affect full-time and contract workers, including leaders and mid-managers. However, hourly manufacturing and logistical workers will be unaffected.
Lucid's downsizing follows big employment losses at Tesla and other North American electric vehicle makers this year as growth slows.
Despite difficulties selling its Air vehicle, Lucid achieved a delivery record in Q1 2024. The firm received $1 billion from its principal owner, Saudi Arabia's national wealth fund, in March.
What to Expect from Lucid Gravity SUV
This week, Lucid Motors released a new video showing its design team's traditional processes for its forthcoming Gravity SUV.
In the third chapter of its "Road to Gravity" video series, Lucid's design team uses clay models to imagine the flagship all-electric SUV, per Teslarati. The "Road to Gravity" series previously covered Lucid's Arizona factory's vehicle development and winter testing. Each video emphasizes Lucid's goal of making the finest electric SUV.
Lucid anticipates that Gravity's innovative features will set it apart in the premium electric SUV sector, to rival Tesla Model X and Rivian R1S.
The automobile manufacturer introduced the Gravity SUV in November, showcasing 112 cubic feet of storage, a 0-60 mph speed under 3.5 seconds, 6,000 pounds of towing capability, a 900-volt design, 440 miles of range, and a starting price of around $80,000.
Lucid Motors' "Road to Gravity" series shows the rigorous design and engineering behind the highly anticipated electric SUV, demonstrating the company's dedication to innovation and excellence.
Our approach to design has led to an entirely new standard for the electric SUV. Join us where the creative process begins, deep inside Lucid's Silicon Valley Design Studio. #RoadToGravity #LucidMotors
— Lucid Motors (@LucidMotors) May 22, 2024
Go here for more on Gravity: https://t.co/8nCORUM387 pic.twitter.com/sywLGyxAj3
These developments follow the transfer of a former Lucid executive to a competitor. Ford Motor Co. announced days ago that it has hired Sherry House, former Lucid chief financial officer, to replace John Lawler, who would manage the turnaround strategy, as reported by CNBC.
According to a Ford news statement, House will become vice president of finance in early June and CFO by early 2025.
In the meantime, Lawler will remain CFO and vice chair. Since October 2020, Lawler has been Ford's CFO, helping construct the Ford+ turnaround strategy to boost efficiency and profitability. This strategy heavily invests in electric car manufacturing.
Ford's warranty expenses of $1.9 billion in 2023 were high. Due to production costs, quality concerns, and operational inefficiencies, the corporation has a $7 billion to $8 billion yearly disadvantage over conventional competitors.
