EV startup Lucid plans to lay off hundreds of workers at every level of the company, leaked memo says
Caitlin O'Hara/Reuters
- Lucid is planning to lay off hundreds of workers, the company told staff Tuesday.
- The cuts will affect about 18% of the company, according to five sources and a copy of an internal memo seen by Insider.
- Lucid has been struggling with demand and getting vehicles on the road.
Electric-vehicle startup Lucid is planning to lay off hundreds of employees, the company told staff during an all-hands meeting Tuesday, according to five sources familiar with the matter and a copy of an internal memo that was viewed by Insider.
Lucid CEO Peter Rawlinson told employees the company will cut about 18% of its workforce, per the sources and the internal memo, which was sent after the short meeting. Given Lucid employed approximately 7,200 employees globally as of the end of 2022, according to regulatory filings, that would be about 1,290 employees.
The sources were granted anonymity as they are not authorized to speak publicly about the company, but their identities are known and verified by Insider.
The memo said that Lucid would communicate details about the layoffs over the next three days and that the cuts would impact every organization and level of the company, including executives. Impacted employees are expected to receive a severance package including access to career resources, healthcare coverage continuation, and acceleration of equity, according to the memo.
The memo also attributed the cuts to cost discipline, and said that the company's cost structure optimization efforts alone wouldn't achieve its objectives and that letting team members go was a "painful but necessary decision."
Lucid did not immediately respond to Insider's request for comment about the announcement.
The cuts mark yet another round of layoffs that have hit tech and mobility startups in recent months as economic concerns have companies cutting costs and watching their bottom lines.
Lucid's journey
Lucid has been experiencing several challenging months amid a scramble to nail down manufacturing and production and get cars on the roads.
An internal cancellation protocol was sent to sales employees late last year in an attempt to nip customer cancellations in the bud. Meanwhile, Lucid launched an employee purchase program incentivizing its workers to buy cars themselves and created an existing inventory website to sell cars that don't require a wait.
Lucid has also emailed customers about utilizing the commercial EV tax credit for leasing, given its EV does not currently qualify for the new EV purchase credit. It has also cut prices for purchases delivered by the end of April.
Lucid's chief executive emphasized in the company's fourth-quarter earnings call last month that bolstering sales, marketing, and brand recognition would be priorities for 2023.
"Last year, my focus was on manufacturing," Rawlinson said. "My focus now is on amplifying the message, attracting a broader audience, and ramping up our sales."
Are you a current or former Lucid employee? Do you have an opinion or tip to share? Contact this reporter at astjohn@insider.com. Signal and WhatsApp are available.
from Business Insider https://ift.tt/fL7p4hj
Comments
Post a Comment