Sun. Jul 14th, 2024

Electric vehicle maker is cutting hundreds of Bay Area jobs under red ink

By Vaseline May30,2024

Lucid Group’s headquarters at 7373 Gateway Boulevard in Newark.

NEWARK — Lucid Group has unveiled its plans to cut hundreds of jobs in the Bay Area, part of a major reorganization that the electric vehicle maker hopes will help position it for “future success.”

The electric vehicle maker has decided to cut more than 200 jobs at the company’s headquarters at 7373 Gateway Boulevard in Newark, according to an official filing sent to the state Employment Development Department.

“There are 258 employees, including remote workers, who will be affected by the layoffs at the Newark campus, which are expected to be permanent,” said Ross Boughton, deputy general counsel of Lucid USA and Lucid Group USA, the Lucid units who perform the task. cuts, wrote in the WARN letter to the state EDD.

The layoffs would take place on or around July 23.

“To optimize our resources to best position Lucid for future success, we are reducing our workforce,” Lucid said in the WARN filing with the California Labor Department.

The job cuts at Lucid Group come at a time when the electric vehicle maker is racking up billions of dollars in annual losses — even as the company’s revenue is rising and its red ink appears to be shrinking.

According to the Yahoo Finance site, Lucid Group lost $2.73 billion on revenue of $618.6 million in the 12 months ending in March.

During calendar year 2023, Lucid lost $2.83 billion on revenue of $595.3 million, Yahoo Finance reported.

Newark-based Lucid Group said employees who are laid off cannot replace workers with lower seniority.

“There are no applicable bump permissions,” Lucid stated in its WARN notice.

Lucid isn’t the only electric vehicle maker to announce plans for layoffs this year.

Through multiple rounds of job cuts, Tesla has announced its decision to cut at least 3,600 jobs in the Bay Area alone, impacting workers in Fremont and Palo Alto.

Fisker Group has decided to lay off 45 employees in San Francisco.

Related Post