Arizona EV maker Lucid slashes nearly 1,000 jobs in cost-cutting move
Apr 3, 2023, 9:00 AM | Updated: 9:19 am
(Lucid Photo)
(Lucid Photo)
PHOENIX — Lucid USA, an electric vehicle builder with manufacturing operations in Casa Grande, is slashing its Arizona workforce by over 900 jobs, according to a filing the company submitted to the Arizona Department of Economic Security on Friday.
A federal labor law-mandated WARN notice showed the number was 968.
In a March 28 email to employees, Lucid CEO Peter Rawlinson announced the company would be laying off about 1,300 employees throughout the organization.
“We have been reviewing and implementing several other ways to optimize our cost structure, but unfortunately these measures alone won’t achieve our objectives,” Rawlinson said in the email.
“Consequently, we’ve made the painful but necessary decision to let some of our talented team members go.”
He added those terminated employees will be offered a severance package and company-paid health care coverage continuation. All employees will be advised of their status this week he said.
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The move to cut jobs comes despite the company exceeding expected vehicle production at its Arizona manufacturing facility in 2022: The company produced 7,180 vehicles, exceeding annual production guidance, and delivered 4,369 vehicles.
Lucid reported fourth quarter revenue of $257.7 million and annual revenue of $608.2 million, ending the quarter with approximately $4.9 billion total liquidity, which is expected to fund the company into the first quarter of 2024.
In February, Lucid provided 2023 annual production guidance of up to 14,000 vehicles.
“As we look ahead to 2023, we’ll continue to focus on strong capital discipline, leaving no stone unturned for every cost optimization,” CFO Sherry House said in a February press release.
“We are proud of our technology and product achievements. We’re gearing for growth, while simultaneously taking a comprehensive look at reducing costs, and I’m very excited about the opportunities that lie ahead of us.”
The company said it employed about 7,200 people at the end of 2022. Its headquarters are located in Newark, California.
