Electric-vehicle maker Lucid Group Inc. is planning to lay off about 18 percent of its workforce, Insider reported on Tuesday, citing sources familiar with the matter and an internal memo.

The company’s shares fell nearly 8 percent.

Lucid, which had about 7,200 employees at the end of last year, will communicate details of the layoffs in the next three days, according to the report.

The company did not immediately respond to a Reuters request for comment.

Lucid, which makes the Air luxury sedan, last month forecast 2023 production well short of analysts’ expectations and reported a major drop in orders during the fourth quarter as decades-high inflation pinches consumer wallets.

Industry experts say price cuts by industry leader Tesla Inc. and the availability of cheaper EV models from traditional automakers hurt demand for new vehicles from startups such as Rivian Automotive Inc. and Lucid.

Last month, Rivian said it would let go of 6 percent of its workforce in an effort to cut costs.

Companies in the U.S. have stepped up cost cuts as they brace for a looming recession amid aggressive interest rates hikes by central banks worldwide.

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