Autos

Lucid Lays Off 6% Of Workforce Ahead Of Gravity SUV Launch

Author: Max McDee May 27, 2024

Lucid Motors, the ever-so-slowly rising star of the EV world, is preparing to launch its long-awaited electric SUV, the Lucid Gravity. At the same time, the company decided that there was no better time than now to trim its workforce. In what the company calls a “restructuring plan,” as many as 400 people were given the pink slip, which amounts to about six percent of the U.S. employees.

On Friday, the company revealed in its statutory 8-K filing that it was ready to shed some weight. Peter Rawlinson, Lucid’s CEO, emailed employees the bad news, trying to put a good spin on what ultimately is not-so-good news for some.

The Restructuring Plan

Lucid Motors is cutting its workforce across the table, with many departments affected by this round of restructuring. The layoffs will affect all levels, from leadership to mid-level management, with only logistics and hourly manufacturing departments spared.

The company predicts it will save between $21 and $25 million and expects to cover all the expenses with cash. This not insignificant sum will better prepare Lucid Motors for “future growth,” according to the company’s CEO.

Lucid Gravity — Image Credit: Lucid Motors / YouTube.

The job cuts come at a crucial time for Lucid. The company is ready to officially launch its first electric SUV, the Gravity. While we have seen the first photos and even some first reviews of the vehicle, it will arrive in the showrooms before the end of this year. A lot is riding on the Gravity, with the company hoping to significantly expand its customer base.

Lucid’s Financial Rollercoaster

To say that Lucid’s financials have been a rollercoaster ride is an understatement. While the company did report $172.7 million in revenue in the first quarter of this year, the operational losses were reported at a staggering $729.9 million.

Lucid Air Sapphire — Image Credit: Lucid.

For now, the company is surviving thanks to a sizable $1 billion investment from Saudi Arabia’s Public Investment Fund. That latest financing round put Lucid’s purse at a $5 billion level, giving the company some breathing space. However, if the losses are not taken care of, even the deep pockets of the Arabian investors might dry out quicker than expected.

It has been a painful couple of months for the automotive workers. Tesla started with a brutal cut of 20% of its staff, Rivian followed suit, and now Lucid has joined the ranks. This is a broader trend in the industry, with all companies trying to increase their profit margins and possibly preparing for tougher times ahead, making sure they can not only survive but prosper even if the markets slow down.

Author: Max McDee

Title: Author

Expertise: cars, motorcycles, airplanes, boats

Bio:

Max is a gearhead through and through. With a wrench in one hand and a pen in the other, Max has spent the past thirty years building and racing some of the most impressive vehicles you’ll ever lay your eyes on. Be it cars, motorcycles, or boats, Max has a way of taking raw mechanical power and turning it into a work of art. He’s not just a talented engineer, either – he’s a true industry insider, with a wealth of knowledge and a love for a good story.

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Share on X (Twitter) Share on Facebook Share on Pinterest Share on Reddit <use href="#<svg width="1em" height="1em" viewBox="0 0 32 32" class="scriptlesssocialsharing__icon flipboard" fill="currentcolor" aria-hidden="true" focusable="false" role="img"> <title>flipboard</title> <path d="M24.997 13.001h-5.998v5.998h-5.998v5.998h-5.998v-17.995h17.995zM1.004 1.004v29.991h29.991v-29.991z"></path> </svg>" xlink:href="# flipboard “> Share on Flip itLucid Motors, the ever-so-slowly rising star of the EV world, is preparing to launch its long-awaited…

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Expertise: cars, motorcycles, airplanes, boats

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