March 28 (Reuters) – Electric-vehicle maker Lucid Group Inc (LCID.O) said on Tuesday it would lay off about 18% of its workforce, or around 1,300 employees, to cut costs as part of a restructuring plan.

Lucid, which had about 7,200 employees at the end of last year, will incur between $24 million and $30 million in related charges.

The maker of Air luxury sedan last month forecast 2023 production that fell well short of analysts’ expectations and reported a major drop in orders during the fourth quarter as decades-high inflation pinches consumer wallets.

Industry experts say price cuts by industry leader Tesla Inc (TSLA.O) and the availability of cheaper EV models from traditional automakers have weighed on demand for new vehicles from startups such as Lucid and Rivian Automotive Inc (RIVN.O).

Last month, Rivian said it would let go of 6% of its workforce in an effort to cut costs.

Companies in the United States are reining in expenses as they brace for a looming recession amid aggressive interest rates hikes by central banks.

Lucid’s shares closed down about 7%.

Reporting by Akash Sriram and Raghav Mahobe in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila

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