Lucid expects $158 million in savings from 18% workforce cut
Lucid Group on Tuesday posted a second-quarter loss of $1.26 billion, or $3.30 a share, compared with a loss of $855.3 million, or $2.80 a share, in the same period a year earlier. The company said the wider loss was driven in part by charges tied to job cuts made in late June.
Revenue rose to $405.4 million from $259.4 million a year earlier, ahead of the $381.6 million that analysts polled by FactSet expected. On an adjusted basis, Lucid reported a loss of $2.78 a share, wider than the $2.36 a share analysts were looking for, according to FactSet.
In the latest period, the company produced 4,774 vehicles, up 24% from a year earlier, and delivered 3,953 vehicles, up 19%.
The financial results came as Lucid cut its workforce and reduced vehicle production. In late June, the company laid off about 18% of its U.S. workforce, including its chief operating officer and former chief executive. Lucid booked workforce reduction charges of $33.7 million and said it expects the cuts to yield about $158 million in savings. It also said it reduced vehicle production to lower inventory and free up cash.
Last month, Lucid hired a financial adviser to counsel it on a turnaround. The company, which is majority-owned by Saudi Arabia’s Public Investment Fund, said it wasn’t exploring bankruptcy or taking the company private. Chief Executive Silvio Napoli said the company was focused on its cash flow improvement plan and advancing its robotaxi, AMP-2 and midsize programs. Lucid reiterated that it has sufficient liquidity to carry operations well into next year.