NEWARK — Lucid Group plans to slash hundreds of jobs in the Bay Area, part of a wrenching reorganization the electric vehicle maker said is necessary to position it for “future success.”
The company said it will cut 258 jobs at the company’s headquarters complex in Newark, according to an official filing sent to the state Employment Development Department.
“To optimize our resources to put Lucid in the best position for future success, we are reducing our workforce,” Lucid stated in a WARN notice to the state.
The layoffs, which are scheduled to occur on or around July 23, “are expected to be permanent,” Ross Boughton, a deputy general counsel for Lucid USA and Lucid Group USA, wrote in the WARN letter to the state.
The Lucid Group job cuts are occurring at a time when the electric vehicle maker is racking up billions of dollars in annual losses — although the company’s sales are rising and the red ink appears to be shrinking.
Over the 12 months that ended in March, Lucid Group lost $2.73 billion on revenue of $618.6 million, according to the Yahoo Finance site.
During calendar 2023, Lucid lost $2.83 billion on revenue of $595.3 million, Yahoo Finance reported.
Lucid isn’t the only electric vehicle maker to reveal plans for layoffs this year.
Tesla has disclosed, through multiple rounds of job cuts, its decision to chop at least 3,600 jobs in the Bay Area alone, affecting workers in Fremont and Palo Alto.
Fisker Group has decided to lay off 45 workers in San Francisco.