Report: Lucid, an EV startup, to slash 18% of its workforce

Lucid Group Inc., an electric-vehicle maker, is looking to cut around 18% of its workforce, as per an internal memo and sources familiar with the matter cited by Insider. The company, which had nearly 7,200 employees at the end of last year, will provide more information about the layoffs within the next few days. Following the news, the company’s shares fell about 8%. Lucid is the manufacturer of Air, a luxury sedan. Analysts say that Lucid’s projections for 2023 production fell far below expectations, primarily due to the scarcity of orders during Q4 of last year, when consumer wallets were stretched by unprecedented inflation. The electric automaker faces stiff competition from existing automakers that are producing cheaper EVs, and from Tesla, the industry leader that has drastically cut prices. Rivian Automotive Inc., another startup, had also announced earlier this year that it was laying off 6% of its workforce as part of cost-cutting measures. Companies in the US, facing aggressive interest rate hikes worldwide, have been slashing costs in preparation for a looming recession.