Lucid Motors cuts 18% of staff to simplify operations

Lucid Motors announced on Monday that it is laying off 18% of its workforce, which translates to around 1,500 employees. The electric vehicle manufacturer is also eliminating the second shift of production at its factory in Casa Grande, Arizona. According to a statement from Lucid Motors, the restructuring is intended to “simplify the company, sharpen execution, and position Lucid to become more competitive over time” under its new CEO, Silvio Napoli. The layoffs affect full-time employees, contractors, and hourly production workers globally. At the end of 2025, the company reported having 9,000 employees globally, prior to a previous 12% staff cut.

The restructuring comes as the electric vehicle market in the United States has cooled, prompting the company to align production plans with anticipated demand. Major automakers have also been pulling electric models from their own product plans. Lucid Motors expects the financial impact of these changes to include:

• Annualized savings of around $158 million.
• Severance costs of approximately $32 million.

Additionally, the outgoing interim CEO and former COO, Marc Winterhoff, has departed the company. In a regulatory filing, Lucid Motors stated that it has eliminated the chief operating officer position entirely. Winterhoff will receive severance, security support, and will be allowed to keep his company vehicle.

Despite the workforce reductions, Lucid Motors plans to release the Lucid Cosmos SUV later this year. The SUV is expected to start at under $50,000, a price point intended to put the company on the path to profitability. Additionally, the company is partnering with Uber and Nuro on a robotaxi service—defined as an autonomous vehicle service—in San Francisco. The company declined to comment on whether any of its programs are being mothballed.

The layoffs follow a period of executive turnover at the company, which has seen more than a dozen top executives leave over the last two years. Former CEO Peter Rawlinson resigned in February 2025. Former Chief Engineer Eric Bach was let go in late 2025 and subsequently filed a wrongful termination lawsuit, which has since been stayed pending arbitration. Most recently, Emad Dlala, a former employee, resigned earlier this month, just a few months after being promoted to a top role.

Why it matters

Lucid is attempting to stabilize its operations and reach profitability by cutting costs and focusing on its upcoming mass-market SUV, even as it faces a cooling US EV market and significant executive turnover.