Arizona electric vehicle maker Lucid announces plans to lay off nearly 1,000 in Casa Grande

Arizona's fledgling electric vehicle industry is taking a blow with word that Lucid Group will lay off about 1,300 employees, including nearly 1,000 at its new factory in Casa Grande.

In an updated report filed with the Arizona Department of Economic Security, the company said 968 of the job losses would happen at the sprawling Pinal County facility, revising down an earlier estimate of 1,296 cuts there.

CEO Peter Rawlinson informed employees of the layoffs in a March 28 letter under the heading of "difficult news today." That was followed by a posting of the layoffs with the Arizona Department of Economic Security.

"Given evolving business needs and productivity improvements, we are reducing the size of our organization by approximately 18%, which will affect Lucid employees and contractors," said Rawlinson, who also serves as the company's chief technology officer.

"This action is aligned with the cost discipline announcement we made in late February when we reported earnings. We are also taking continued steps to manage our costs by reviewing all non-critical spending at this time."

The luxury vehicle maker, which is headquartered in Newark, California, said it employed about 7,200 people at the end of 2022. For the full year, it reported a $2.56 billion loss attributable to common shareholders on revenue of $608 million. Lucid produced nearly 7,200 cars in Casa Grande last year.

Affected employees will receive a severance package that includes Lucid-paid health care insurance, access to career resources and other benefits.

Rawlinson's note said Lucid's workforce will see reductions "in nearly every organization and level, including executives." He added that the layoffs are designed to position the company to be more resilient and agile, strengthening it for the long term.

Lucid's mission remains unchanged, he continued.

"We are committed to a more innovative and environmentally sustainable future – designing, building, and delivering the best EVs on the market as we expand globally and develop more exceptional vehicles such as the Gravity SUV, which we plan to launch in 2024," Rawlinson said in his letter.

"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."

Reach the reporter at russ.wiles@arizonarepublic.com.