The electric vehicle startup Lucid told employees it would lay off roughly 18% of its workforce during a staff meeting on Tuesday.
Lucid CEO Peter Rawlinson told employees the company would cut hundreds of workers. He said details of the layoffs would be released in the coming days. The cuts will affect every level of the company, including executives. There will be about 1,300 cuts.
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« I know this is not easy as these actions create uncertainty. This week and the weeks ahead will be about processing change as we show empathy for colleagues who are departing and as we come together on our path forward, » Rawlinson said in an internal memo. « These decisions are designed to position us to be more resilient and agile, thereby strengthening the company for the long-term. »
Affected employees are expected to receive a severance package that includes access to career resources, a continuation of their healthcare coverage, and an acceleration of equity, according to the memo.
Julie Jacobson/AP
The cuts are the latest to hit the technological and mobility startup sector. Many companies have struggled to handle inflation and a possible looming recession. Lucid claimed that « cost discipline » was the reason for the cuts, and he said letting team members go was a « painful but necessary decision. »
The decision comes after months of car production problems for the company, and it is part of the company’s restructuring plan. The company announced a recall of nearly 600 vehicles earlier this week. The recall was to fix a problem that could lead to the vehicles losing power.
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« Our mission remains unchanged. We are committed to a more innovative and environmentally sustainable future — designing, building, and delivering the best EVs on the market as we expand globally and develop more exceptional vehicles, » Rawlinson said.
« I am confident that we have the most advanced technology, we have the right operational infrastructure and know-how to deliver, and we have a track record of tenacity that will make us stronger, » he added.
