Lucid Stock Gains 3% Premarket After EV Maker Announces 6% Workforce Reduction, Cutting 400 Jobs To Lower Costs
Portfolio Pulse from Anan Ashraf
Lucid Group (NASDAQ:LCID) announced a 6% workforce reduction, cutting 400 jobs to lower costs. The stock gained 3% in pre-market trading following the news. The layoffs are part of a restructuring plan expected to be completed by the end of Q3, with charges between $21 million to $25 million. Despite a significant net loss in Q1, Lucid has $5.03 billion in liquidity to sustain operations until the production of the Gravity SUV in 2025.
May 24, 2024 | 11:39 am
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Lucid Group's stock gained 3% in pre-market trading after announcing a 6% workforce reduction to lower costs. The restructuring plan will incur charges between $21 million to $25 million. Despite significant Q1 losses, Lucid has sufficient liquidity to sustain operations until 2025.
The announcement of workforce reduction and cost-cutting measures is seen positively by investors, as evidenced by the 3% pre-market gain. The company's significant liquidity also provides a buffer against short-term financial challenges.
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