Electric-vehicle maker Lucid Group stated on Tuesday it could lay off about 18 % of its workforce, or round 1,300 staff, to lower prices as half of a restructuring plan.
The maker of Air luxurious sedan final month forecast 2023 manufacturing that fell properly quick of analysts’ expectations and reported a significant drop in orders in the course of the fourth quarter.
The firm plans to talk with all its staff over the following three days in regards to the plan, CEO Peter Rawlinson stated in a letter, including its US workforce will see reductions in practically each group and stage, together with executives.
Lucid, which had about 7,200 staff on the finish of final yr, will incur between $24 million (roughly Rs. 200 crore) and $30 million (roughly Rs. 250 crore) in associated prices. The firm expects to considerably full the restructuring plan by the top of the second quarter.
“We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time,” Rawlinson stated.
Companies within the US are reining in bills as they brace for a looming recession amid aggressive rates of interest hikes by central banks.
Industry consultants say worth cuts by trade chief Tesla and the provision of cheaper EV fashions from conventional automakers have weighed on demand for brand spanking new automobiles from startups such as Lucid and Rivian Automotive.
Last month, Rivian stated it could let go of 6 % of its workforce in an effort to lower prices.
Lucid’s shares closed down about 7 % in common buying and selling.
© Thomson Reuters 2023
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