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According to Carscoops , following a 12% layoff four months ago, electric vehicle startup Lucid is preparing to cut an additional 18% of its workforce in the US, while also halting one production shift at its Arizona plant.
This move affects both full-time employees, subcontractors, and hourly workers. Lucid's biggest problem may not be in production or product development, but in its ability to find customers.
Lucid announced the layoffs earlier this week, including the immediate resignation of former interim CEO and COO Marc Winterhoff. Lucid is reportedly eliminating the COO position entirely as part of a broader restructuring effort under new CEO Silvio Napoli, who officially took over the helm at Lucid on June 1st.
The American electric car manufacturer said the layoffs would save approximately $158 million in annual costs, but only cost about $32 million in severance pay and related expenses.
“These are difficult decisions being made to align production with market demand, reduce inventory levels, and adapt to deteriorating market conditions,” a Lucid spokesperson said in a statement sent to CNBC .
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The American electric vehicle manufacturer said the aforementioned moves are part of a larger effort to streamline operations, improve performance, and position Lucid to become more competitive over time.
The Lucid Air electric sedan showcased Lucid's ability to create a quality EV. The Gravity inherits this formula in the form of a three-row SUV, receiving praise for its range, performance, and luxury.
Despite the shower of praise, Lucid seems unable to find an effective way to achieve sufficient sales to sustain its thousands of employees and its ambition to become a major force in the automotive industry.
The cancellation of the second production shift at the AMP-1 plant in Casa Grande, Arizona, is believed to reflect Lucid's current market situation. Automakers typically avoid wasting production capacity if they perceive demand exceeding supply.
In the first quarter of the year, Lucid reported shipping approximately 5,500 vehicles but only delivering just over 3,000, resulting in higher-than-expected inventory levels.
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The current situation means that the upcoming Cosmos crossover will play a crucial role in Lucid's future success or failure. With an expected starting price under $50,000 , the Lucid Cosmos is expected to capture market share from Tesla and other competitors.
If successful, Lucid's second round of layoffs would be seen as a shrewd austerity measure. Conversely, the continuous dismissals would only push Lucid further away from the goals the electric car manufacturer had hoped to achieve.
Source: https://znews.vn/hang-xe-dien-lien-tiep-duoi-nguoi-post1662376.html
