Tesla’s rival, Lucid Motors, to lay off 1,300 employees, 18% of its total workforce. : TechMoran
The American manufacturer Lucid Group, which makes the high-end all-electric Air sedan, announced in a regulatory filing that it is restructuring and reducing employment by 18%.
By the end of the second quarter, all 1,300 affected employees will have been let go. As previously indicated, the figure represents 18% of the 7,200-person workforce. While many other businesses also made layoff announcements in preparation for the coming crisis, this one may have been the largest in terms of percentage. With Tesla’s aggressive price cuts and legacy automakers introducing more affordable EVs, startups like Lucid and Rivian are facing big challenges.
In relation to its restructuring plan, Lucid anticipates charges of between $24 million and $30 million, specifically for severance pay, employee benefits, and stock-based compensation. The layoffs will cut across the entire organization including executive positions.
Employees were informed via email by CEO and CTO Peter Rawlinson that the restructure was necessary due to “changing business needs and efficiency improvements.” He said that the action is in line with a cost-cutting announcement made back in February. The email claims that although the company has cut costs, it was not enough to prevent layoffs.
As a result, Rawlinson commented, “We’ve made the difficult but necessary decision to part ways with some of our excellent team members.”
While Lucid exceeded initial expectations in terms of car production in 2022, the prognosis for 2023 is far beyond what industry observers had predicted. Lucid stated that its goal for this year is between 10,000 and 14,000 automobiles, which is much lower than the 21,815 units predicted by analysts.
NSSF gets new Managing trustee – Weekly Citizen
Germany enters recession after economy contracts in first quarter
Richard Turere named as a finalist for the Young Inventors Prize for his solar-powered lights
Finance Bill to kill local industries, lobby warns
KCB Group Q1 2023 Profit Soars to KES 9.8 Billion: A Detailed Look
Muthama wants clergy to back efforts to scrutinize religious organizations
Ababu: Kenya’s Paris Olympic athletes to train in Cuba
Good Phone on a Budget
Kenya Small Firm Diaries research reveals growth and stability as key priorities for small businesses in Kenya
Zimbabwe aims to become Africa’s carbon credit trading hub
Tunisia stops 26 illegal EU crossings
Do Europe airports, airlines mistreat Africans; use old, rickety planes on African routes?
Water companies reject directive to transfer assets
We should normalise menstruation | Nation
Put the national interest above partisan pursuits
Kenya has positioned itself as trade and investment hub
Housing levy will address indignity of slum life: Ruto
Biden Trips, Tumbles On Air Force Stage
US President Joe Biden trips and falls at Colorado event
Entertainment industry struggles with 215 bn piracy site visits
Trending Videos6 days ago
KTB plans to increase arrivals from Middle East
Sports7 days ago
FIFA U20 World Cup : Gambia shock France in important win, qualify for last 16
Business News6 days ago
Dr. Joseph Kinyua elected new Chairman of KCB Group PLC
General News6 days ago
Ex-Gov’t official arrested for allegedly forging 4 academic certificates to get job
Tech6 days ago
Stakeholders hold meeting to discuss Nairobi City Climate Action Plan
Business News4 days ago
A goat to victim’s family, defilement case settled!
General News4 days ago
Over arraignment of ex-Mungiki leader Maina Njenga, anti-riot police blocked roads leading to Nakuru Law Court
Trending Videos7 days ago
Government to double school meals budget