Lucid Group to cut workforce by about 18% as part of restructuring plan

In a regulatory filing, Lucid Group confirms that it announced a restructuring plan intended to reduce the company’s operating expenses "in response to evolving business needs and productivity improvements" through a reduction of the company’s current employee workforce by approximately 1,300 employees, or approximately 18% and that on March 28, Peter Rawlinson, the company’s CEO and Chief Technology Officer, sent an email to the company’s employees regarding the plan. The company expects to substantially complete the plan by the end of the second quarter of 2023, subject to local law and consultation requirements. "The company estimates that it will incur a total of approximately $24M to $30M in charges in connection with the plan, which consist primarily of charges related to employee transition, severance payments, employee benefits, and stock-based compensation. The company expects that charges of approximately $22M to $28M will be recognized primarily in the first quarter of 2023, with the majority of such charges anticipated to be paid by the end of the second quarter of 2023. Substantially all of these charges are expected to result in cash expenditures. The charges related to stock-based compensation are not expected to be material. The estimates of the charges and expenditures that the company expects to incur in connection with the plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. The company may also incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the plan," Lucid stated.