Luxury electric-vehicle maker Lucid Group said it plans to cut 18% of its workforce, or about 1,300 employees, as part of a restructuring in the second quarter.

 

Luxury electric-vehicle maker Lucid Group said it plans to cut 18% of its workforce, or about 1,300 employees, as part of a restructuring in the second quarter.  The U.S. startup makes the Air luxury EV sedan that competes with Tesla's Model S. In an email to employees, Lucid CEO Peter Rawlinson said the cuts will impact U.S. employees and contractors at most levels and organizations of the company, including executives. The automaker is also taking more steps to review its non-critical expenditures as it seeks to manage costs, he wrote. The restructuring is expected to be completed by June 30. The company expected to incur charges of $24M to $30M from the job cuts. Lucid still plans to launch its all-electric Gravity SUV in 2024, Rawlinson added. The reorganization comes after Lucid missed analysts' expectations in its Q4 and full-year 2022 financial results. Lucid slashed its production target for 2023 to between 10,000 and 14,000 vehicle deliveries, down from the 20,000 to 22,000 expected by analysts.