Libian fired about 140 employees, or about 1% of its workforce, in preparation for the launch of the more affordable R2 SUV in 2026.
The cut is primarily made by the Libyan manufacturing team and has been ongoing since Wednesday, according to several former employees who were given anonymity to talk about the layoffs. Some employees were told they were eliminating the role that the company created “process inefficiency.”
Libian confirmed the cut in an email to TechCrunch. “We have made the difficult decision to reduce the number of small-salary manufacturing employees as part of our ongoing efforts to improve operational efficiency for R2,” the spokesman wrote. The company said affected employees are encouraged to apply for other open positions within the company.
Libian began the year with more than 14,800 workers in North America and Europe, according to an annual filing with the Securities and Exchange Commission. The company has made multiple cuts in recent years, including a 10% reduction in early 2024 and a layoff of about 1% in April 2024.
