Lucid Layoff

[mallig]

Lucid Group Inc. (LCID) plans to lay off roughly 18% of staff, which would mean more than 1,000 job cuts, according to a Tuesday report. Insider reported that the electric-vehicle maker revealed the plans in an all-hands meeting and internal memo Tuesday, based on at least five sources and viewing the memo.

 

[mallig]

Lucid Group Inc. (LCID) plans to lay off roughly 18% of staff, which would mean more than 1,000 job cuts, according to a Tuesday report. Insider reported that the electric-vehicle maker revealed the plans in an all-hands meeting and internal memo Tuesday, based on at least five sources and viewing the memo

 

[thecodingart]

Okay, so? Lucid is not going anywhere. Let's not panic (if anybody is planning to).

The problem with these articles, is people interpret them with doom + gloom without putting things into perspective. I had to post the following today to a few people as a bit of a reminder...

https://www.tesla.com/blog/update-elon-musk

Tesla burns cash, loses more than $4,000 on every car sold

Tesla's narrower margin for error is just one more way in which it is different from its century old rivals.

www.cnbc.com

 

[DBV]

That is truly sad for those employees. 18% is a significant number and definitely not positive news for Lucid. It will really hurt/crush morale within Lucid.

What a tough environment to be a startup right now.

 

[DeaneG]

It will really hurt/crush morale within Lucid.

For a few weeks. Then the survivors will be part of a closer-knit team. It's sad, but a startup's first big layoff does tend to focus people.

 

[RM-S8]

For a few weeks. Then the survivors will be part of a closer-knit team. It's sad, but a startup's first big layoff does tend to focus people.

Exactly. Darwin's theory of evolution applies.

 

[joec]

For a few weeks. Then the survivors will be part of a closer-knit team. It's sad, but a startup's first big layoff does tend to focus people.

So long as they did this correctly, and that 18% is all they need to cut for a long while, yes.

Most of my friends have been floored at how poorly Google and Facebook have been handling their recent layoffs, with multiple rounds, no clear sense of reasoning, and a "Who knows who will be next?" feeling amongst the remaining employees. A chunk of the remaining employees in both places are already looking to jump ship as a result. Which, in Facebook's case at least, might be the point. (Don't have to pay severance to people who quit, after all.)

 

[DBV]

For a few weeks. Then the survivors will be part of a closer-knit team. It's sad, but a startup's first big layoff does tend to focus people.

Maybe. I have been part of corporate 500 companies that do layoffs all the time and the atmosphere is toxic. If this is one time then I agree with the above, but if I worked at Lucid I might be looking elsewhere. Other might not agree and your choice.

 

[MoniputerLM]

Is this the beginning of a long drawn-out end?

 

[Sandvinsd]

The problem after layoffs is that the good ones remaining are the same people who can find alternatives and jump ship. You are left with the ones who cannot. The quality of the workforce then drops.

 

[joec]

Is this the beginning of a long drawn-out end?

No

 

[RM-S8]

" You are left with the ones who cannot. "

" You are left with the ones who can. The quality of the workforce then rises."

Major flaw with your logic .

 

[joec]

" You are left with the ones who can. "

Major flaw with your logic .

No, I think he means the ones who can, do. And then all that are left are the ones who have no better options. Makes sense to me.

 

[Sandvinsd]

No, I think he means the ones who can, do. And then all that are left are the ones who have no better options. Makes sense to me.

Yes. After layoffs, anyone who is remaining, and had not been exploring career options before, will now dip their toes into the water. If something appears outside which is better, and if they are good - often coming with a promotion and an increase in pay and benefits,, they will leave. The weaker employees, while still looking outside, will not have an alternative and are left to stay with “a sinking ship”. Happens all the time.

 

[Tesla2.0]

There will be retainer bonus after layoff to key and critical employees to protect intellectual property interest. I was one of those guys survived 7 rounds of lay offs in a few month in the worst Fortune 10 companies debacle.

 

[lucidtouringman]

Yes. After layoffs, anyone who is remaining, and had not been exploring career options before, will now dip their toes into the water. If something appears outside which is better, and if they are good - often coming with a promotion and an increase in pay and benefits,, they will leave. The weaker employees, while still looking outside, will not have an alternative and are left to stay with “a sinking ship”. Happens all the time.

I personally laid off a good chunk of my team last year...it was brutal and morale was low for sure...yet we kept our head down and today we cannot hire fast enough and morale is back and we're creating profits like crazy...I hope and think that by same time next year Lucid will be thriving...once the economy opens up a bit and after the electrions the cheaper credit situation will be the first thing a new president will address...so I think the company will be fine long-term but this definitely sucks short-term...

 

[kerplunk]

Is this the beginning of a long drawn-out end?

My one big reservation about Lucid is the question if the company survives. I've got 3 days left to place my order and I'd be lying if this thought didn't cross my mind. I'm not a baller by any means. I'm much more of a Ioniq 5N and buying used kind of a car. The lucid credit and legacy pricing is too good to pass up.

Money isn't cheap anymore and while the product is amazing. I'm worried about overall demand.

 

[Lucid23]

" You are left with the ones who can. The quality of the workforce then rises."

Major flaw with your logic .

My one big reservation about Lucid is the question if the company survives. I've got 3 days left to place my order and I'd be lying if this thought didn't cross my mind. I'm not a baller by any means. I'm much more of a Ioniq 5N and buying used kind of a car. The lucid credit and legacy pricing is too good to pass up.

Money isn't cheap anymore and while the product is amazing. I'm worried about overall demand.

Lease rates are not ideal but personally my plan is to do a 2 year lease.
The downside is to great if you don't have an option to walk away in my opinion.

 

[DBV]

Lease rates are not ideal but personally my plan is to do a 2 year lease.
The downside is to great if you don't have an option to walk away in my opinion.

Was contemplating the same - 2 year lease. See where it goes after that.

 

[kerplunk]

Lease rates are not ideal but personally my plan is to do a 2 year lease.
The downside is to great if you don't have an option to walk away in my opinion.

I never leased before. The cars I'm rolling around are from 06, 08 and 12 just to give you a glimpse of my psyche lol.
You've given me some things to think about.

So the hedge is: if Lucid tanks you just give the car back and you are free? If at the end of the lease and you want to keep the car you pay the residual? Which includes a little more $ on top of the cars actual value. Do we have good numbers on what that residual will be?