Lucid (LCID) cuts US workforce by 6% ahead of Gravity EV launch

Lucid (LCID) is the newest EV maker to disclose job cuts to cut back prices. As a part of a brand new restructuring plan, Lucid plans to cut back its US workforce by 6%, or about 400 workers.

Lucid cuts workforce amid new restructuring plan

In an 8-K filing Friday, Lucid introduced a brand new restructuring plan, which incorporates reducing round 400 jobs.

CEO Peter Rawlinson emailed workers on Could 24, 2024, explaining the brand new job cuts amid plans to restructure its US and contract workforce. Rawlinson mentioned the discount will “not impression our hourly manufacturing and logistics workforce.”

Nevertheless, it would impression “workers in any respect ranges, together with management and mid-level administration.”

The job cuts quantity to about 6% of Lucid’s US workforce. Lucid expects to finish the brand new plan by the top of Q3 2024.

Below the brand new plan, which primarily consists of severance funds, worker advantages, and stock-based compensation, Lucid expects round $21 to $25 million in expenses. About $19 to $23 million shall be primarily reported in Q2, with a lot of the expenses anticipated to be paid by the top of Q3 2024.

Lucid expects a lot of the bills to be money expenditures. In the meantime, modifications to stock-based compensation are “not anticipated to be materials,” in keeping with Lucid.

Rawlinson defined that “letting go of our gifted staff members is troublesome and a call we didn’t take flippantly” and thanked everybody who had helped the corporate develop.

The information comes forward of what might be Lucid’s most essential mannequin but. Lucid is ready to launch manufacturing of its first electrical SUV, the Gravity, by the top of the 12 months. Lucid’s CEO mentioned, “I’m assured Lucid will ship the world’s finest SUV and dramatically increase our whole addressable market.”

Because the program continues to be dropping cash, “we should stay vigilant about prices.” He careworn, “Right now’s choice is about positioning us for future progress.”

Lucid set a new delivery record within the first quarter and is seeing the momentum proceed into Q2. Rawlinson boasted, “I wish to stress that the longer term is vibrant at Lucid.”

The information comes after a number of rivals, together with Rivian, reduced their workforces in an effort to extend earnings.

Lucid’s inventory is down round 4% following the information. LCID shares are actually down over 65% over the previous 12 months.

Electrek’s Take

Lucid generated $172.7 million in income in Q1, up from $149.4 million a 12 months in the past. In the meantime, the EV maker decreased operational losses ($729.9 million vs $772.2 million) because it seems to be towards its subsequent progress stage.

The Gravity is predicted to open up new markets for Lucid, considerably increasing its addressable market.

With another $1 billion investment from Saudi Arabia’s Public Funding Fund (PIF), Lucid ended the quarter with over $5 billion in liquidity.

Lucid expects to construct round 9,000 autos this 12 months, practically the identical because the 8,428 models made in 2023. Following the Gravity, Lucid plans to launch a brand new mid-size electrical SUV that may increase its market drastically.