Lucid Motors is laying off 12% of its workforce in a bid to “improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” according to an internal memo that was obtained by TechCrunch.

Hourly workers on the manufacturing, logistics, and quality teams are not affected by the cuts, according to the memo, which was sent to employees being spared by the layoffs.

It’s unclear exactly how many workers are being laid off, but it is likely in the hundreds.

Lucid Motors reported having 6,800 full-time employees globally at the end of 2024.

“Saying goodbye to colleagues is never easy,” interim CEO Marc Winterhoff wrote in the memo.

“We are grateful for the contributions of those impacted by today’s actions, and we are providing severance, bonus, continued health benefits, and transition support to help them through this period. ” The company did not immediately respond to a request for comment.

The cuts come as the company is in the middle of ramping up production and deliveries of its Gravity SUV.

While Lucid Motors struggled with Gravity production and quality issues during the first few months, the company has been able to pick up the pace, and ultimately doubled its 2024 output last year.

The company is also preparing to launch a more affordable mid-size EV later this year that is expected to cost around $50,000.

It’s collaborating with Uber and autonomous vehicle company Nuro on launching a robotaxi service in the San Francisco area this year, too.

The company is scheduled to release its financial results for 2025 next week.

“Importantly, today’s actions do not affect our strategy,” Winterhoff wrote in the memo.

“Our core priorities remain unchanged, and we continue to focus on the start of production of our Midsize platform. With disciplined execution, we are also focused on further expansion into the robotaxi market, continued ADAS and software development, and growth in sales of Lucid Gravity and Air across existing and new geographies

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