June 25, 2024

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Lucid is cutting 400 jobs, about 6% of the workforce

Lucid is cutting 400 jobs, about 6% of the workforce

Lucid Group (LCID) intends to cut 400 jobs, or about 6% of its workforce, as part of a restructuring, according to the company. Deposit. The move comes just over a year after the electric vehicle manufacturer cut 1,300 jobs in an attempt to cut costs. Lucid is expected to launch its Gravity SUV later this year.

In the video above, Yahoo Finance Brad Smith And Sina Smith Discuss the challenges Lucid faces.

For more expert insights and the latest market action, click here to watch this full episode of Morning Summary.

This post was written by Stephanie Mikulic.

Video version

Lucid announces a restructuring plan to improve the company’s operating expenses.

The company is looking to reduce its workforce by about 400 employees.

Shares are now up about 1.1%.

But you hate seeing pops that are really specific to this company, especially if you look at the broader term here.

Yes, the last two days

But if we take a year-to-date chart for Lucid, the picture is very different here and even over the past 52 weeks.

Year to date down 35% here.

And this comes at a time when they’re also in the broader kind of electric vehicle demand landscape.

They’re on the very luxurious side of that as well, so trying to attract some big bucks to buy that luxury experience can be a little more difficult.

Oh yeah, and you have more competition from the likes of Mercedes and some of the electric car offerings they’re putting out there, and still Tesla too?

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Yes exactly.

And this is just another product or another effect here of the slowdown that we’ve seen in the adoption and growth rate of electric vehicles, and as a result, a number of these companies are facing these difficult decisions.

It’s also important to note that Lucid isn’t alone in having to announce layoffs here over the last two quarters.

Even when you take into account what has happened in the past two months, you will find that Tesla is announcing layoffs and that it will cut about 10% of its workforce.

Also, Vivian has laid off several workers this year.

So again, create the latest to join that.

Why does it happen?

This happens because of the uptake rate that you were talking about the fact that consumers are feeling the pressure.

Not many consumers are buying these big tickets right now, because rates are high and are likely to stay high for a while longer here when you take a look at the latest commentary that we have from Fed officials here this week.

So, if we take all of that in context, it does impair a lot of these electric vehicles, uh, here in the United States, and as a result, electric vehicle manufacturers are having to make adjustments to their businesses, and unfortunately they’re having to lay off hundreds of workers and as a result here trying to To reduce costs.

But when it comes to these restructuring efforts, saying they’re going to take a charge of about 21 to 25 million from this restructuring plan, the bulk of that will be recognized here in the current quarter.

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