Lucid Group Inc (NASDAQ:LCID) is reducing its United States workforce by approximately 18% as part of a broader cost-cutting initiative aimed at improving efficiency and aligning production with demand, the electric vehicle maker announced on Monday.
The company said the restructuring is expected to generate about $158 million in annualized cost savings
The reductions include full-time employees, contractors, and hourly manufacturing staff, according to a filing with the US Securities and Exchange Commission. As part of the changes, Lucid also confirmed that its chief operating officer (COO), Marc Winterhoff, is leaving the company effective immediately. The COO role has been eliminated.
Winterhoff previously served as interim CEO until Silvio Napoli assumed the position on June 1. The automaker also said it will eliminate the second production shift at its AMP-1 facility in Arizona, a move that is expected to further align output with current demand. The company expects to incur roughly $32 million in cash charges related to severance and employee transition costs.