Jakarta –
Electric vehicle manufacturer Lucid Group Inc (LCID.O) has announced that it will be terminating its employment (layoffs) to 1,300 employees or around 18%. This cut was made as part of reducing the company’s cost burden in the restructuring plan.
The company’s own condition has decreased, vehicle orders in the fourth quarter of 2022 were reported to have decreased. Therefore, vehicle production in 2023 is also predicted to be far from expectations.
Lucid Group CEO Peter Rawlinson explained that his party would communicate with all of its employees over the next three days about the plan to lay off. This announcement was made in a letter to his employees.
These layoffs will affect the United States (US) workforce more. He said the layoffs affected the US workforce in various divisions, including the executive. In total, Lucid has 7,200 employees.
“The US workforce will experience reductions at almost every organization and level, including the executive,” he said, quoted by Reuters, Wednesday (29/3/2023).
To cover the employees who have been laid off, Lucid will pay US$ 24 million and US$ 30 million. The company expects to substantially complete the restructuring plan by the end of the second quarter of 2023.
“We are also taking further steps to manage our costs by reviewing all expenses that are not currently essential,” said Rawlinson.
Industry experts revealed a number of reasons why a number of electric vehicle manufacturers experienced a decline in orders. The reasons include price cuts by the world’s largest electric car manufacturer Tesla Inc (TSLA.O) and EV cars that are offered cheaper by a number of manufacturers.
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(ada/dna)
