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CA EV Maker Plans Mass Layoffs After Announcing Major Flaw In Popular Model

Lucid Group already laid off about 300 employees in February — the third layoff for the company since 2023.

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A 2024 Air sedan sits outside a Lucid store in a mall Wednesday, Aug. 21, 2024, in Denver. (AP Photo/David Zalubowski)

NEWARK, CA — Electric vehicle manufacturer Lucid Group has announced the company will reduce its workforce by 18 percent, just months after the Bay Area company cut hundreds of jobs.

Lucid Group announced the layoffs in a Securities and Exchange Commission filing on Monday, which would impact full-time employees, hourly workers and contractors. The cuts come only four months after the company dropped 319 employees, who accounted for about 12 percent of Lucid's workforce.

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Lucid, which has struggled with profitability, trimmed about 1,300 jobs in 2023 and about 400 jobs in 2024.

The company said its plan would lead to approximately $158 million in annual savings.

"These are difficult decisions taken to align production with demand, reduce inventory, and adapt to declining market conditions. They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time," Lucid said in a statement.

The announcement comes weeks after the manufacturer reported some of its entry-level model the Lucid Air Pure could suddenly lose power while driving.

As of Dec. 31, Lucid Group had about 9,000 employees worldwide.

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