Yet another electric vehicle (EV) manufacturer has confirmed it will lay off a significant number of employees as consumers return to gas-powered alternatives.
About 400 employees, equivalent to six percent of the company's workforce, will lose their jobs as the company seeks to cut costs.
Reuters reported:
The layoffs at Lucid will impact employees at all levels, including leadership and middle management, CEO Peter Rawlinson told employees in an email, but said the cuts would not impact hourly wages in the manufacturing and logistics sector .The company had a total of about 6,500 full-time employees worldwide as of December last year, its latest annual filing showed. Shares of the EV maker rose 1% in premarket trading.
Lucid expects to incur a total of approximately $21 million to $25 million in costs related to the workforce reductions and expects to complete the plan by the end of the third quarter of 2024.
Last month, The Gateway Pundit reported how Ford had lost a whopping $1.3 billion in its EV division in the first quarter of 2024, equivalent to $132,000 for each of the 10,000 electric cars it sold in that period.
Even the most popular brands, including Elon Musk's Tesla, have seen a marked decline in sales. force the company will also lay off 10 percent of its global workforce.
The problems in the EV market are a continuing blow to the Biden administration, which remains determined to force the transition away from gas-powered vehicles despite the lack of clear scientific evidence on their economic and environmental benefits.
However,, The New York Times recently reported that the government gave up many of its electric vehicle production targets as part of an election-year “concession” to automakers and unions.
