Lucid, an electric vehicle (EV) manufacturing startup has officially announced that it is laying off around 1,300 workforce which is around 18 per cent of the employees from the company. The move will be implemented in the upcoming months.
As per the email from Peter Rawlinson, CEO of Lucid, the content spoke being attached to a regulatory filing, the job cuts will be impacting the employees and contractors "in nearly every organisation and level, including executives", The Verge report stated.
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The filing further stated that the restructuring should be finished "by the end of the second quarter of 2023", and the CEO added that the workers will learn more about the layoffs over the next three days.
According to the email, fired workers will receive "career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity".
Furthermore, the startup has intended to spend between $24 million and $30 million on "charges related to employee transition, severance payments, employee benefits, and stock-based compensation", according to the filing.
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The layoffs, according to Rawlinson, are "aligned with the cost discipline announcement we made in late February when we reported earnings", which also further revealed that Lucid had spent around $2.6 billion over the fiscal year 2022.
Last month, the company claimed to have around 28,000 reservations but it would only be able to produce 10,000 to 14,000 vehicles throughout 2023, it stated.
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This shows how difficult it has been for the company to get cars made and into the hands of customers, the report said.
Inputs from IANS