Newark-headquartered Lucid Group Inc, an electric vehicle (EV) producing company, announced its plans to cut down 18 per cent of its entire workforce as a part of its restructuring process. The decision would impact nearly 1,300 employees.

According to a Reuters report, the Air luxury sedan-producing company is planning to communicate with its employees in the coming days. 

The development came after the company witnessed a drastic drop in orders in the fourth quarter of the financial year (FY) 2023. Also, its last month’s production forecast did not meet the analyst’s expectations. Its share prices also witnessed a two per cent decline on Tuesday. 

"We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time," CEO Peter Rawlison said, addressing the recent development. 

The global tech space witnessed massive hardships in 2022. A Mint report suggested that nearly 1,50,000 employees lost their jobs last year. Fearing recession, big tech giants like Meta, Twitter and Google were seen trimming their employee numbers to keep their companies on profitability track. For instance, Twitter laid off nearly 7,500 staff after the acrimonious takeover by the maverick billionaire Elon Musk. Meta also fired 13 per cent of its global employees. 

This year has also not offered any difference till now. It started with global e-commerce major Amazon hitting the headlines after announcing to fire its 18,000 employees. It was followed by Google’s parent Alphabet and Walmart, which planned to fire 12,000 and 10,000 employees respectively.