Lucid Motors, which is Casa Grande’s largest employer, has let go nearly 1,000 local employees as part of a restructuring plan “in response to evolving business needs and productivity improvements.”
The Bay Area-based producer of luxury electric vehicles said in a filing with the Securities and Exchange Commission the layoffs would affect approximately 18% of its worldwide workforce and nearly all levels of employees would be affected, including executives.
CEO Peter Rawlinson said in a letter to employees March 28 that everyone losing their job would be notified in the following three days. He also said, “We would not have the best EV on the market without the collective efforts of all of our teams, which is a direct result of your tremendous perseverance, resourcefulness, and teamwork. I want to express my deep personal gratitude to everyone who has contributed up to this point and to the teams that will help advance our mission going forward.”
The initial SEC filing on March 27 indicated about 1,300 positions were being eliminated in the restructuring plan, without stating how many would be coming out of the advanced manufacturing plant, or AMP-1, at 317 S. Thornton Rd.
An updated WARN notice about the layoffs submitted to the Arizona Department of Economic Security four days later said 968 employees in Pinal County were affected.
Casa Grande Mayor Craig McFarland said Lucid had about 3,000 employees at the factory before the layoffs and remains the city’s largest employer, while newer arrivals are beginning to ramp up hiring, with Kohler hiring up to 400 to produce bath and shower products at its plant and more companies coming in.
“Our key focus right now is making sure we’re communicating the right information and making sure there isn’t misinformation out there about Lucid, and there’s good information out there to its employees for them to try to find a job,” he said. Other employers currently hiring include Abbott Nutrition, Hexcel and Frito Lay, he said.
Lucid estimated it would be taking a charge of $24 million to $30 million to execute the restructuring, much of it going toward severance packages to include payments, continuation of health insurance coverage and career transition resources. The restructuring is expected to be complete by the end of June.
Rawlinson said in his message Lucid will continue to pursue its growth plans, including the release of the Gravity luxury SUV electric vehicle targeted for 2024: “I am confident that we have the most advanced technology, we have the right operational infrastructure and know-how to deliver, and we have a track record of tenacity that will make us stronger.”
The company began building its Casa Grande plant at the end of 2020, four years after the company selected the site, after getting a $1 billion infusion from the Saudi Arabian government through an investment fund. The first Lucid Air sedans were delivered in October 2021, and they were quickly named MotorTrend’s Car of the Year for having the longest EPA-verified range per charge in the industry at up to 520 miles, as well as advanced design. Currently available Air models sell for $111,000 to $158,000, before tax credits or other incentives.
Lucid released its fourth-quarter and full-year 2022 results in February, with 7,185 cars produced and 4,369 delivered. Annual revenue was $608 million, but it reported a $1.3 billion loss and projected further losses in upcoming years.
