Lucid to cut about 18% of U.S. staff as COO exits
The EV maker said the restructuring will save about $158 million a year and eliminate the chief operating officer role.
By Hana Yoshida · Markets Reporter
2 min read
Lucid Group said Monday it will cut about 18% of its U.S. workforce under a restructuring plan aimed at lowering costs. The electric-vehicle maker said the plan is expected to produce about $158 million in annualized savings, while Chief Operating Officer Marc Winterhoff has left the company effective immediately.
Lucid said it has eliminated the COO position as part of the changes. The company did not name a replacement for Winterhoff.
The workforce reduction covers full-time employees, contractors and hourly production workers in manufacturing, according to Lucid’s filing with the Securities and Exchange Commission. Lucid also said in the filing that it will end the second production shift at its AMP-1 factory.
Charges tied to restructuring
Lucid told regulators it expects about $32 million in cash charges connected to severance, employee benefits and worker transition costs. The company said the reductions are part of a broader cost-savings plan.
The filing did not give a specific headcount for the jobs affected. Lucid described the reductions as applying to its U.S. workforce, not its global staff.
The cuts come after Lucid said last month that incoming CEO Silvio Napoli would review the company’s operations. Lucid also suspended its guidance at that time, saying Napoli’s evaluation of the business would affect its outlook.
Lucid said last month it needed to reduce what it called elevated vehicle inventory. For automakers, high inventory levels can lead companies to slow or pause production, CNBC reported.
Production changes
The decision to eliminate the second shift at AMP-1 links the cost reductions directly to factory operations. Lucid did not provide additional detail in the filing on timing for the production-shift change beyond the restructuring announcement.
Lucid’s announcement places the company among electric-vehicle makers trying to control expenses while matching production with demand. The company’s stated plan centers on lower staffing costs, fewer factory shifts and a streamlined executive structure.
Winterhoff’s departure also removes one of Lucid’s top operating roles during the management transition. Lucid said the COO job itself has been eliminated, rather than reassigned.
Lucid shares trade under the ticker LCID. The company’s Monday filing outlined the staff cuts, expected charges and projected annual savings but did not include a revised business forecast.
This story draws on original reporting from CNBC.