Electric vehicle maker Lucid Group Inc. disclosed on Tuesday that it plans to lay off approximately 1,300 employees, with the chief executive describing it as a “painful but necessary decision.”
Lucid (LCID) has announced in a filing with the Securities and Exchange Commission that it will be reducing its workforce by approximately 18%. The layoffs are expected to be completed mostly by the end of the second quarter. In a letter to employees included in the SEC filing, Chief Executive Peter Rawlinson stated that it was a “painful but necessary decision.”
“In order to strengthen the company for the long term, these decisions are designed to make us more resilient and agile,” wrote Chief Executive Peter Rawlinson.
The layoffs were reported by Insider before the SEC filing and come after a difficult start to Lucid’s electric vehicle production. In 2022, the company lost over $1.3 billion despite generating slightly more than $600 million in revenue from mass-producing EVs. In February, executives projected the production of 10,000 to 14,000 vehicles in 2023, which disappointed Wall Street as reservation numbers declined.