Lucid to cut 1,500 jobs and end second shift at Arizona plant
The EV maker said the reductions, equal to 18% of its workforce, are part of an effort to cut costs and move toward profitability.
By James Whitfield · Staff Writer
2 min read
Lucid Motors is cutting about 1,500 jobs, a reduction equal to 18% of its workforce, as the electric-vehicle maker tries to lower costs and move closer to profitability. The company also plans to end the second shift at its factory in Casa Grande, Arizona, according to a Securities and Exchange Commission filing.
The cuts mark Lucid’s second workforce reduction this year. TechCrunch reported that the company eliminated 12% of its staff in February as it sought a more stable financial footing.
In its SEC filing, Lucid said the latest plan is intended to support its push toward profitability and positive cash flow. The company said it will do that by changing its organizational structure, reducing operating expenses and bringing production plans in line with expected demand.
Lucid expects the job cuts and factory shift change to produce $158 million in savings, according to the filing. The company also expects to spend $32 million on severance, employee benefits and transition-related costs.
Executive role eliminated
Marc Winterhoff, Lucid’s chief operating officer and a former acting chief executive, is among the employees set to receive severance, Ars Technica reported. Lucid is eliminating the COO position as part of the restructuring, according to that report.
Winterhoff had served as acting CEO after Peter Rawlinson stepped down in February, Car and Driver reported at the time. Lucid appointed Silvio Napoli as CEO in April, according to Ars Technica.
The leadership changes come during a year in which Lucid has continued to broaden its vehicle plans while trying to address costs. Ars Technica reported that the company introduced a new midsize electric-vehicle platform three months ago and said it would support several future models.
Lucid currently sells the Air sedan and the Gravity SUV, according to Ars Technica. The company has said its route to profitability depends on smaller, lower-priced vehicles sold in higher volumes.
The latest cuts show the pressure on Lucid as it tries to scale beyond its existing lineup. The SEC filing ties the restructuring directly to anticipated demand, indicating the company is adjusting staffing and production capacity while it works toward a more sustainable business model.
This story draws on original reporting from Ars Technica.