Lucid Group Inc (LCID) said this week it would lay off about 1,300 people, or nearly 18% of its workforce, as part of a restructuring plan.
Lucid Group’s Chief Executive Officer Peter Rawlinson said the company would communicate with all its employees over the upcoming days about the plan.
The EV maker’s US workforce will be reduced in almost every organization and level, including executives, the CEO said.
The company expects to incur between $24 million and $30 million in related expenses.
“We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time,” Lucid’s CEO said.
The EV startup expects to substantially complete the restructuring plan by the end of the second quarter.
In February, Lucid forecast full-year 2023 production well below market expectations and reported a significant decrease in orders in the fourth quarter.
The shares of Lucid Group Inc closed 7.25% ($0.59) lower at $7.55 on Nasdaq on Tuesday, while extending losses from the previous trading session.
The company’s total market cap now stands at $13.821 billion.
The shares of Lucid Group Inc have risen 10.54% so far this year, following an 82.05% slump in 2022.