San Francisco. Electric vehicle (EV) startup Lucid has announced that it is laying off around 1,300 employees or 18 per cent of its workforce in the coming period. The job cuts will affect employees and contractors at “virtually every organization and level, including executive,” according to an email from CEO Peter Rawlinson, which was attached to a regulatory filing, The Verge reported.
The filing said the restructuring should be finished “by the end of the second quarter of 2023,” and Rawlinson said employees would learn more about the layoffs in the next three days.
Fired employees will receive “career resources, Lucid-paid healthcare coverage continuity, and equity,” according to the email.
In addition, the startup will spend between $24 million and $30 million on “charges related to severance pay, employee benefits and stock-based compensation,” according to the filing.
The layoffs, according to Rawlinson, “align with the cost discipline announcement we made in late February when we reported earnings,” which also revealed that the company had spent approximately $2.6 billion in fiscal 2022.
Last month, the company reported having orders for over 28,000, but said it would be able to produce only 10,000 to 14,000 vehicles in 2023.
The report said that this shows how difficult it has been for the company to make the car and get it in the hands of the customers.(IANS)
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