Lucid Group announced Monday it will cut approximately 18% of its U.S. workforce — an estimated 1,500 workers — including full-time employees, contractors, and hourly manufacturing staff, while also eliminating a second production shift at its Casa Grande, Arizona facility. Chief Operating Officer Marc Winterhoff simultaneously departed the company. The restructuring, expected to generate $158 million in annualized savings, follows a separate 12% workforce reduction just four months prior. Lucid shares fell roughly 4% on the news. The company, now led by permanent CEO Silvio Napoli, continues pursuing profitability amid supplier disruptions affecting its Gravity SUV and a suspended 2026 production outlook.
In-Depth:
Electric vehicle manufacturer Lucid Group announced Monday that it will cut roughly 18% of its U.S. workforce as part of a broader restructuring effort aimed at reducing costs and improving profitability amidst mounting pressure in the electric vehicle indusattempt.
The company also revealed the departure of Chief Operating Officer Marc Winterhoff, marking another major leadership modify during a challenging period for the autobuildr. The layoffs will affect full-time employees, contractors, and hourly manufacturing workers across the United States. Lucid stated it is also eliminating the second production shift at its AMP-1 manufacturing facility in Casa Grande, Arizona, its primary vehicle assembly plant.
The company did not disclose the exact number of workers impacted. However, Lucid reported approximately 9,000 employees globally at the conclude of 2025. Indusattempt estimates suggest the cuts could affect around 1,500 workers, building it one of the largest workforce reductions in the company’s history.
Shares of Lucid fell about 4% following the announcement as investors weighed the potential benefits of cost reductions against concerns about slowing growth and ongoing operational challenges.
The restructuring comes only four months after Lucid announced a separate reduction affecting approximately 12% of its U.S. workforce. At the time, company executives stated the shift was necessary to streamline operations and continue pursuing profitability in an increasingly competitive EV market.
Lucid stated the latest restructuring is expected to generate approximately $158 million in annualized cost savings. The company anticipates recording around $32 million in severance payments and other employee-related charges associated with the layoffs. Most of the workforce reductions are expected to be completed by the conclude of the third quarter of 2026.
Companies such as Lucid and rival EV startup Rivian have faced pressure to reduce spconcludeing and demonstrate a path toward sustainable profitability after years of heavy investment.
Lucid has also encountered operational setbacks in recent months. Earlier this year, the company disclosed supplier-related issues that disrupted deliveries of its new Gravity SUV. In May, it suspconcludeed its 2026 production outview while conducting a broader review of its business strategy.
The company is betting heavily on the success of the Gravity SUV, as well as a future midsize vehicle platform expected to expand its customer base beyond the luxury segment currently dominated by the Lucid Air sedan. Lucid is also pursuing long-term growth opportunities through partnerships with ride-hailing giant Uber Technologies and autonomous vehicle startup Nuro as part of its robotaxi ambitions.
The restructuring coincides with another executive shakeup. Winterhoff, who served as Lucid’s interim chief executive after former CEO Peter Rawlinson stepped down in February 2025, has now left the company. Earlier this year, Lucid appointed Silvio Napoli, the former head of elevator manufacturer Schindler Group, as its permanent chief executive.
