EV Maker Lucid To Lay Off Nearly 1,300 Employees

The fired workers will receive "career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity."

By : ABP News Bureau | Updated at : 29 Mar 2023 12:13 PM (IST)

EV Maker Lucid To Lay Off Nearly 1,300 Employees EV Maker Lucid To Lay Off Nearly 1,300 Employees

Lucid will also spend between $24 million and $30 million on "charges related to employee transition".

Source : Getty

Lucid, the electric vehicle (EV) startup, plans to lay off around 1,300 of its employees, constituting 18 per cent of its workforce, according to an email from CEO Peter Rawlinson, which was attached to a regulatory filing. The cuts will affect employees and contractors "in nearly every organisation and level, including executives". The restructuring should be completed "by the end of the second quarter of 2023", and Rawlinson said that workers will learn more about the layoffs over the next three days.

The fired workers will receive "career resources, Lucid-paid healthcare coverage continuation, and acceleration of equity."

The startup will also spend between $24 million and $30 million on "charges related to employee transition, severance payments, employee benefits, and stock-based compensation," according to the filing.

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The layoffs, according to Rawlinson, are "aligned with the cost discipline announcement we made in late February when we reported earnings," which also revealed that the company had spent about $2.6 billion over the fiscal year 2022.

Lucid had previously reported having over 28,000 reservations, but it only expects to produce 10,000 to 14,000 vehicles throughout 2023, indicating how difficult it has been for the company to manufacture and deliver cars to customers.

Meanwhile, Microsoft-owned open-source developer platform GitHub has sacked its entire engineering team in India, according to a report by TechCrunch. The report cited a person familiar with the matter saying that over 100 workers have been affected.

ALSO READ: Meta To Lay Off 10,000 Employees, Close Around 5,000 Additional Open Roles

This comes after GitHub announced in February that it is laying off 10 per cent of its workforce within this fiscal year. GitHub had about 3,000 employees before the layoffs were announced.

In an email to employees, GitHub CEO Thomas Dohmke said sustained growth is important for every business.

"Today, we are the home of 100 million developers, and we must become the developer-first engineering system for the world of tomorrow. We must continue to help our customers grow and thrive with GitHub, expedite and simplify their cloud adoption journey, while supporting them every day," the CEO wrote.