Lucid Group Inc LCID shares are trading lower by 3.54% to $7.28 Wednesday morning after the company announced a restructuring plan intended to reduce its operating expenses through a reduction of its current employee workforce by roughly 1,300 employees.
What Happened?
On Tuesday, Peter Rawlinson, Lucid CEO and CTO, sent an email to employees regarding the plan.
The reduction of the company’s current employee workforce of approximately 1,300 employees represents approximately 18% of Lucid's workforce.
The company expects to substantially complete the plan by the end of the second quarter of 2023, subject to local law and consultation requirements.
Lucid estimates that it will incur a total of approximately $24 million to $30 million in charges in connection with the plan, which consist primarily of charges related to employee transition, severance payments, employee benefits and stock-based compensation.
Lucid also expects that charges of approximately $22 million to $28 million 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.
According to data from Benzinga Pro, LCID has a 52-week high of $28.14 and a 52-week low of $6.09.
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