(Reuters) – Lucid Group will cut its U.S. workforce by 6%, or about 400 workers, it said on Friday, becoming the latest electric vehicle maker to cut jobs as industry growth slows.

Automakers are trying to control costs as elevated inflation and high interest rates prompt consumers to cut back on relatively exorbitant electric vehicles and switch to cheaper, hybrid alternatives.

Layoffs at Lucid (NASDAQ:) will impact employees at all levels, including leadership and middle management, CEO Peter Rawlinson told employees in an email, but said the cuts would not affect hourly production workers and logistics.

As of last December, the company had approximately 6,500 full-time employees worldwide, according to its latest annual report.

Shares of the electric vehicle maker rose 1% in pre-market trading.

Lucid expects to incur approximately $21 million to $25 million in total charges related to the job cuts and is expected to complete the plan by the end of the third quarter of 2024.

Industry peer Rivian (NASDAQ:) has gone through two rounds of layoffs this year, the most recent coming last month when it cut 1% of its workforce to augment margins.

Electric vehicle giant Tesla (NASDAQ:) also said last month it would lay off more than 10% of its global workforce.

Lucid forecast higher annual capital expenditures earlier this month as it works to expand production capacity at its plant in Arizona and build a novel one in Saudi Arabia.

The company, backed by Saudi Arabia’s Public Investment Fund, is also expected to start production of a cheaper mid-size car in behind schedule 2026 and the Gravity SUV this year to attract a larger customer base.