Why Lucid Motors is firing 12% of its workforce
What's the story
Luxury electric vehicle (EV) maker, Lucid Motors, has announced plans to lay off about 12% of its global workforce. The decision comes as part of the company's strategy to streamline costs and focus on achieving profitability. The layoffs will impact hundreds of employees out of a total workforce of 6,800. However, hourly workers in manufacturing, logistics and quality teams will not be affected by these cuts.
Employee support
Perks for fired employees
The company has promised severance pay, bonuses, health benefits, and transition assistance to the employees who have been laid off. Interim CEO Marc Winterhoff emphasized that despite these changes, Lucid Motors will continue to focus on new models and software upgrades. The company is currently ramping up production of its Gravity SUV while also preparing to launch a more affordable mid-size EV later this year at around $50,000.
Strategic expansion
Lucid is expanding its robotaxi partnerships
Along with new model launches, Lucid Motors is also expanding its robotaxi partnerships with Uber and Nuro in San Francisco. The company has seen a lot of executive turnover lately, including the departure of its chief engineer. It has also faced production and quality issues. However, despite these challenges, the company's core priorities remain unchanged as it continues to focus on starting production of its Midsize platform.