Lucid Motors, a luxury electric vehicle maker in California, is cutting 400 employees, or 6% of its workforce, to reduce costs.

The layoffs will not affect hourly manufacturing and logistics staff in Arizona.

Restructuring costs are expected to be between $21-25 million.

Lucid aims to deliver 9,000 vehicles in 2024 despite a nationwide slowdown in electric vehicle demand.

The company is focusing on boosting sales for its Lucid Air flagship vehicle.

Lucid recently secured $1 billion in financing and unveiled a 3-million-square-foot expansion of its Casa Grande manufacturing facility.

Following the layoff announcement, Lucid's stock closed at $1.78, showing a slight increase.

Lucid is backed by the Saudi Public Investment Fund.