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Lucid Lays Off 18% of Overall Workforce as Part of Profitability Push

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Lucid Lays Off 18% of Overall Workforce as Part of Profitability Push

Lucid Group (LCID) on Monday disclosed plans to cut 18% of its total workforce, including removing the chief operations role, as part of a plan to streamline its structure and boost profitability.

The layoffs include full-time employees, contractors and hourly production workers in manufacturing, the electric vehicle manufacturer said in a regulatory filing with the Securities and Exchange Commission. The plan also includes terminating the second production shift at its AMP-1 factory and aligning output plans with expected demand, according to the company.

Lucid had about 9,000 employees around the world as of Dec. 31, it said in its annual report. In February, the company reportedly reduced its US workforce by 12%.

Lucid anticipates the restructuring plan, which is projected to be substantially complete by the end of the third quarter, to save roughly $158 million in annual costs. It estimates to incur cash charges of around $32 million related to severance, employee benefits and employee transition costs from the job cuts.

Shares of the automaker were down 3.6% in midday trading, with the stock having lost more than 50% so far this year.

Chief Operating Officer Marc Winterhoff has also departed the company, effective immediately, after the company eliminated the post, Lucid said in the Monday filing. Winterhoff previously served as the company's interim chief executive and returned to the COO post as Silvio Napoli assumed the top role on a permanent basis in the beginning of June.

In May, Lucid reported a first-quarter adjusted loss of $2.82 per share, compared with a loss of $2.04 a year earlier. Revenue improved to $282.5 million from $235.0 million in the prior-year quarter.

For the three month period ended March, the company produced 5,500 vehicles and delivered 3,093 units, it said in April.

Price: $5.18, Change: $-0.19, Percent Change: -3.45%

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