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Lucid Group to Cut 6% of Workforce, Stock Rises 2.6%

May 24, 2024, 12:05 PM

Electric vehicle maker Lucid Group announced plans to reduce its workforce by 6%, affecting approximately 400 employees. The layoffs are part of a restructuring plan aimed at cutting costs in response to a slowing market for electric vehicles. The company expects to incur charges of about $21 million to $25 million related to the layoffs, which are anticipated to be completed by the end of the third quarter of 2024. Lucid's stock rose 2.6% following the announcement and was up 1.1% in pre-market trading. The workforce reduction comes ahead of the launch of Lucid's new Gravity SUV. CEO Peter Rawlinson communicated the decision to employees via email, emphasizing the need to optimize resources. The company had previously slashed 1,300 jobs a little more than a year ago.