PIF-backed Lucid to trim US workforce amid softening EV demand

Lucid Group will reduce its workforce in the United States by 6 per cent, or around 400 employees, it said on Friday, becoming the latest electric-vehicle maker to cut jobs as the industry grapples with slower growth.

Automakers have been trying to control costs as elevated inflation and high interest rates prompt consumers to cut back on relatively costlier EVs and pivot to cheaper, hybrid alternatives.

The layoffs at Lucid will impact employees at all levels, including leadership and mid-level management, CEO Peter Rawlinson told employees in an email, but said the cuts would not impact the hourly manufacturing and logistics workforce.

The company had a total of around 6,500 full-time employees globally, as of December last year, its latest annual filing showed.

Shares of the EV maker rose 1 per cent in premarket trading.

Lucid expects to incur a total of around $21m to $25m in charges related to the workforce reduction and expects to complete the plan by the end of the third quarter of 2024.

Sector peer Rivian underwent two rounds of layoffs this year, the latest being in the last month when it cut 1 per cent of its workforce in an attempt to boost margins.

EV giant Tesla also said last month it would lay off more than 10% of its global workforce.

Lucid forecast higher annual capital expenditure at the start of the month, as it works on expanding production capacity at its Arizona factory and build a new one in Saudi Arabia.

Backed by Saudi Arabia’s Public Investment Fund, the firm is also set to start production of a more affordable mid-size car in late-2026 and its Gravity SUV this year, to attract a larger customer base.