Luxury car maker Lucid has revealed it will lay off 1,300 employees as part of a broader restructuring to cut costs.

The reductions – 18 percent of its workforce – would impact every department and level, including executives

In a memo, CEO Peter Rawlinson said the firm would provide more details about the cuts over the next three days. 

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Employees affected would receive a severance package that includes access to career resources, healthcare coverage, and equity acceleration.

The memo also said the vehicle manufacturer’s attempts to optimize cost structure alone would not meet its goals.

Rawlinson noted in the memo that letting go of team members was a “painful but necessary decision.”

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The cuts are the latest in a string of layoffs that have rocked IT and mobility startups in recent months.

Businesses are looking for ways to cut expenses and watch their bottom lines as economic concerns mount.

Lucid has had a difficult few months as it tries to finalize manufacturing and production and get cars on the road.

As of the end of 2022, the electric vehicle startup employed around 7,200 people worldwide.

Source: Insider

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