by Cameron Arcand
Electric car company Lucid Motors announced layoffs at its southern Arizona facility.
The company is going to lay off 968 employees at their Casa Grande plant, according to a Worker Adjustment and Retraining Notification Notice.
“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,” CEO Peter Rawlinson said in a statement last Tuesday. “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.”
Lucid Motors opened the facility in September 2021, according to 12 News. The company planned to have over 6,000 jobs created by 2029, and an “economic impact” of $100 million, according to a statement from the Arizona Commerce Authority.
In addition to the large investment from the company, the Arizona state government also played a significant role in supporting the development. In 2016, which is when the deal was first made, the Arizona Republic reported that the company could receive upward of $46.5 million in subsidies over time.
The decision to cut employees comes as companies are cutting costs across numerous sectors, especially in the technology industry. The unemployment rate in Arizona is 3.7% as of February 2023, according to the United States Bureau of Labor Statistics. Despite these layoffs, companies are still continuing to invest millions into the state, such as LG Energy Solution and Taiwan Semiconductor establishing themselves in exurbs of Phoenix, as The Center Square previously reported.
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Cameron Arcand is a contributor to The Center Square.
Photo “Lucid Motors Building” by Lucid Motors.
