Lucid Group is cutting approximately 18% of its U.S. workforce as part of a cost-savings plan aimed at boosting profitability amid growing competition and wavering demand for its electric vehicles. This marks at least the second time the company has slashed its workforce this year.
As part of the restructuring, Chief Operating Officer Marc Winterhoff is departing the company effective immediately. The company expects these cuts, including the elimination of the COO position, to reduce annual costs by about $158 million.
The layoffs will affect full-time employees, contractors, and hourly production workers. Additionally, Lucid is eliminating the second shift at its AMP-1 factory in Arizona to align production plans with anticipated demand.
Earlier this year, Lucid suspended its full-year forecast and reported its biggest revenue miss in over four years following supplier-related issues that disrupted Gravity SUV deliveries in February. Shares of the company fell 1.5% in premarket trading following the announcement.