Electric vehicle maker Lucid Group (LCID) is cutting 6% of its workforce, or about 400 employees, as its struggles with a sales decline and slowing growth.
The company said in a news release that it will incur $25 million U.S. in charges related to the workforce reduction, which it plans to complete by the end of this year’s third quarter.
At the end of 2023, Lucid had 6,500 full-time employees worldwide.
While the company’s main electric vehicle, the Lucid Air sedan, has won critical praise from analysts and the automotive press, its high price has led to diminished sales.
Currently, the base model Lucid Air costs $71,400 U.S. and the top model costs more than $250,000 U.S.
The stock of Lucid Group has declined 64% in the last 12 months to trade at $2.72 U.S. per share.
