- Lucid Motors has announced another round of workforce reductions.
- They are cutting around 18% of its employees as part of a cost-saving plan.
- The move comes four months after the all-electric vehicle maker trimmed its workforce by
Lucid Motors has announced another round of workforce reductions, cutting around 18% of its employees as part of a cost-saving plan. The move comes four months after the all-electric vehicle maker trimmed its workforce by 12%.
A Lucid spokesperson said the measures were necessary to align production with current demand, manage inventory levels and respond to challenging market conditions. “They are part of a broader effort to simplify the company, sharpen execution, and position Lucid to become more competitive over time,” the spokesperson was quoted as saying by CNBC.
Lucid has also discontinued the second production shift at its manufacturing facility in Casa Grande, Arizona, reported TechCrunch. The latest round of cuts affects approximately 1,500 employees, including full-time staff, contractors and hourly production workers.
The restructuring also includes management changes. Marc Winterhoff, who served as Lucid's interim CEO before Napoli took charge on June 1, is leaving the company effective immediately. Lucid also eliminated the position of Chief Operating Officer, a role Winterhoff had been expected to retain after stepping down as interim CEO.
According to the company, the layoffs will help align production with anticipated demand and are expected to generate annual savings of around $158 million. The restructuring process is expected to be completed by the third quarter of 2026.
The restructuring is also expected to result in severance expenses of roughly $32 million for Lucid. According to a regulatory filing, Winterhoff will receive severance benefits, certain security support and retain the use of his company vehicle.
The cost-cutting measures come as Lucid prepares to launch the Lucid Cosmos SUV, its first mass-market vehicle. The company hopes the lower-priced model, expected to start below $50,000, will help move it closer to profitability. Lucid is also working with Uber and Nuro on a luxury robotaxi service planned for San Francisco later this year.
Lucid had around 9,000 employees worldwide as of December 31, 2025. Earlier this year, the company had already reduced its US workforce by approximately 12% in a push for profitability.
