Lucid Layoffs: Lucid Group, Inc., an American electric vehicle manufacturer headquartered in Newark, California, has announced that it will lay off around 1,300 of its employees, which accounts for 18 percent of its workforce, in the coming months.

“The Company expects to substantially complete the Plan by the end of the second quarter of 2023, subject to local law and consultation requirements,” the company said in the United States Securities and Exchange Commission filing.

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‘Painful but necessary decision’, says Lucid CEO Peter Rawlinson

Announcing the 18 percent job cuts, Lucid CEO Peter Rawlinson, in a message, said that they have made the ‘painful but necessary decision’ to let some of their talented team members go.

“Earlier today, I announced the difficult decision to reduce our workforce at Lucid. Given evolving business needs and productivity improvements, we are reducing the size of our organization by approximately 18%, which will affect Lucid employees and contractors. This action is aligned with the cost discipline announcement we made in late February when we reported earnings. We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time,” Rawlinson said.

“We have been reviewing and implementing several other ways to optimize our cost structure, but unfortunately these measures alone won’t achieve our objectives. Consequently, we’ve made the painful but necessary decision to let some of our talented team members go,” he said.

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Lucid Layoffs – Compensation for affected employees

The CEO further said that they will ensure that the affected employees receive their full support and offered them a severance package that includes access to career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity to help them with the transition.

The electric vehicle manufacturing startup intends to spend between $24 million and $30 million on “charges related to employee transition, severance payments, employee benefits, and stock-based compensation.”

“Over the next three days, our goal is to communicate with all employees at Lucid so you know what this plan means for you and your teams,” said Rawlinson in the message.

Noting the layoffs will be happening in the coming weeks, Lucid CEO said, “I know this is not easy as these actions create uncertainty. This week and the weeks ahead will be about processing change as we show empathy for colleagues who are departing and as we come together on our path forward. These decisions are designed to position us to be more resilient and agile, thereby strengthening the company for the long term.”

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