Lucid Motors disclosed that there would be about 1,500 layoffs, 18 per cent of the total number of employees, only four months before the 12 per cent reduction in the previous round. At the same time, the company cancelled the second shift at the Casa Grande plant in Arizona, indicating that it was further contracting capacity and costs in response to the slowdown in the demand for electric vehicles in the United States.
According to the company, this round of adjustments was driven by the new CEO Silvio Napoli with the objective of streamlining the organization, improving the efficiency of implementation and enhancing long-term competitiveness. Lucid also disclosed in the regulatory documents that the company had abolished the position of Chief Operator. Marc Winterhoff, who had previously served as temporary CEO, had separated, although the company and management had previously indicated that he would continue to serve as COO after his departure.
Reshaping compressed capacity and jobs
Lucid indicated that the purpose of this reduction was to align production plans with expected demand and to improve the cost structure. In addition to the lay-offs, the company stopped second-class production of the plant, further reflecting its cautious judgement of current market demand.
- Retrenchment of approximately 1,500 personnel
- About 18% of total staff
- The reorganization is expected to be completed by the third quarter of this year
The company expects that this round of restructuring will result in annualized savings of approximately $158 million, but will also pay some $32 million in demobilization costs.
The new car is still the key to profit.
This round of adjustments took place at a time when Lucid was preparing to launch the first popular market model. According to the company plan, Lucid Cosmos SUV will be released later this year at an estimated starting price of less than $50,000. For Lucid, which has long relied on high-end vehicles, this lower-priced product is seen as an important step towards increasing sales and improving profitability.
The United States market for electric cars has recently continued to cool down, and many traditional automobile companies have scaled down or adjusted their electric vehicle product programmes. Lucid synchronized staff reductions and reduction of shifts at this time, indicating that it was reallocating resources to a more conservative market environment.
Autopilot cooperation continues.
While compressing costs, Lucid continues to advance the automatic driving-related layout. In partnership with Uber and Nuro, the company plans to launch a luxury Robotaxi service in San Francisco later this year. However, Lucid did not respond to whether this reduction would affect the project.
Over the past two years, more than a dozen Lucid executives have left. Peter Rawlinson, a long-time CEO, resigned suddenly in February 2025; Eric Bach, Chief Engineer, was dismissed later in 2025 and subsequently filed a wrongful dismissal suit; and Emad Dlala, another senior employee, left earlier this month.
Additional information:Regulatory documents indicate that the outgoing executive, Marc Winterhoff, will receive demobilization arrangements, security support and will be able to retain company vehicles.