MAY 25, 2024 — 400 EMPLOYEES TARGETED IN RESTRUCTURING
On May 24, 2024, Lucid Group announced a restructuring plan intended to optimize the Company’s operating expenses in response to evolving business needs and productivity improvements through a reduction of the Company’s current employee workforce by approximately 400 employees, or approximately 6%. The Company expects to substantially complete the Plan by the end of the third quarter of 2024, subject to local law and consultation requirements.
According to CEO and CTO Peter Rawlinson
Team,
Today, we are announcing a reduction to our US employee and contract workforce, impacting employees at all levels, including leadership and mid-level management. The reduction in force will not impact our hourly manufacturing and logistics workforce.
Letting go of our talented team members is difficult and a decision we did not take lightly. We are thankful to everyone who has helped Lucid at every step of our journey. Accordingly, we have extended severance and health benefits to the impacted employees, and we are offering them outplacement services. Please provide empathy and support to colleagues beginning their search for new employment.
I’m confident Lucid will deliver the world’s best SUV and dramatically expand our total addressable market, but we aren’t generating revenue from the program yet. As always we must remain vigilant about costs. We are optimizing our resources in a way we believe will best position the company for future success and growth opportunities as we focus on achieving our ambitious goals.
We appreciate that we are asking more of everyone at Lucid today. As such, we want all employees, from longstanding team members to new colleagues who will join us in the next phase of Lucid’s evolution, to focus relentlessly on the three factors that will determine our success as a business:
Sell Lucid Air sedans: Despite slowing sales in the broader EV segment, we achieved an all-time delivery record last quarter and have seen that momentum continue into Q2. We must continue accelerating new customer acquisition and expanding awareness for our flagship vehicle.
Stay on track for the Gravity SUV program to start production at the end of 2024 and our midsize program in late 2026. I expect that our SUV and our midsized vehicles will be the best in their segments, and the journey to production will be thrilling.
Be responsible with our resources: While our funding will get us to the next phase of our business, we must continue to exercise strong cost discipline, a message reiterated in our recent earnings call.
I want to stress that the future is bright at Lucid. We are making the world’s most advanced electric vehicles. Our superior technology, design, and performance continue to be embraced by consumers and awarded by industry critics. I can’t think of any other company that has gotten this far this fast, and we continue to innovate for the future.
Today’s decision is about positioning us for future growth. I’m proud of the work this team is accomplishing and am confident that we will only continue to grow stronger. I will address this topic more during a town hall meeting later this morning.
Regards,
Peter
APRIL 10, 2023 — Original post…
Newark, California-based Lucid Group, an electric luxury vehicle manufacturer, has announced a restructuring and its intention to lay off 18% of its workforce.
The reduction in force will impact 1,300 employees and will be completed by the end of the second quarter.
According to CEO and CTO Peter Rawlinson,
CEO and CTO Peter Rawlinson ...
Earlier today, I announced the difficult decision to reduce our workforce at Lucid. Given evolving business needs and productivity improvements, we are reducing the size of our organization by approximately 18%, which will affect Lucid employees and contractors. This action is aligned with the cost discipline announcement we made in late February when we reported earnings. We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time.
We have been reviewing and implementing several other ways to optimize our cost structure, but unfortunately, these measures alone won’t achieve our objectives. Consequently, we’ve made the painful but necessary decision to let some of our talented team members go. We want to ensure that employees whose roles have been impacted receive our full support. We are offering impacted employees a severance package that includes access to career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity to help as much as possible with the transition.
What to Expect
Over the next three days, our goal is to communicate with all employees at Lucid so you know what this plan means for you and your teams.
Our U.S. workforce will see reductions in nearly every organization and level, including executives. As I mentioned, all employees at the company will be advised of their status this week, so please watch for communications. We will send a message to Lucid employees when notifications have been completed. Additionally, VPs of each group, along with people managers, will be scheduling time to discuss what this means for your team over the next couple of days.
I know this is not easy as these actions create uncertainty. This week and the weeks ahead will be about processing change as we show empathy for colleagues who are departing and as we come together on our path forward. These decisions are designed to position us to be more resilient and agile, thereby strengthening the company for the long term.
We would not have the best EV on the market without the collective efforts of all of our teams, which is a direct result of your tremendous perseverance, resourcefulness, and teamwork. I want to express my deep personal gratitude to everyone who has contributed up to this point and to the teams that will help advance our mission going forward.
Our mission remains unchanged. We are committed to a more innovative and environmentally sustainable future – designing, building, and delivering the best EVs on the market as we expand globally and develop more exceptional vehicles such as the Gravity SUV, which we plan to launch in 2024. I am confident that we have the most advanced technology, we have the right operational infrastructure and know-how to deliver, and we have a track record of tenacity that will make us stronger.
My focus now, along with our entire leadership team and HR, is to provide all employees with the respect and support they deserve.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
